ISLAMABAD: The Finance Ministry issued Euro Bonds and Ijara Sukuk both locally and internationally as instruments to tap financial resources from both the capital markets. While Euro Bonds are issued under the implicit guarantee of the sovereign, Ijara Sukuk utilizes an underlying asset. However, as a matter of satisfaction, the Finance Ministry did not issue any bond pledging any revenue stream.
About legality or legal status of both entities as per Shariah, a source at the Finance Ministry told Customs Today that prior to the issuance of both the Euro Bonds and Ijara Sukuk, the ministry obtained a legitimization decree from Fiqh Academy of the OIC.
About the brief history of Ijara Sukuk, the source said that Pakistan issued first Ijara Sukuk in 2005 and this process continued from 2005 to FY2012-13. International Sukuk was backed by international assets worth $600 million in January 2005. The domestic Sukuk were issued against national assets worth Rs 12.5 billion in September 2008, Rs 29.7 billion in March 2009, Rs 88.5 billion in 2010, Rs 168.6 billion in 2011, Rs 163 4 billion in 2012 and Rs 43.0 billion in March 2013.
The source said that Pakistan issued International Sukuk worth $2 billion twice in 2014 and 2016 against national assets; $1 billion: issued in December 2014 against Islamabad-Chakwal section of M2 Motorway and $1 billion: issued in October 2016 against Hafizabad-Lahore section of M2 Motorway.
Similarly, Domestic Sukuk was issued worth Rs 49.5 billion in June 2014 against Faisalabad-Pindi Bhattian Motorway. Rs 117.7 billion issued in December 2015 against Jinnah International Airport, Karachi. Rs 116.2 billion issued in February 2016 against Jinnah International Airport, Karachi and Rs 80.4 billion issued in March 2016 against Jinnah International Airport, Karachi.
