Islamabad: The federal government has approved PKR 700 billion Ijarah Sukuk (Sharia-compliant bonds) against the Jinnah International Airport for three years — for the purpose of funds generation, a news source reported.
As per the publication, the Sukuk is expected to generate funds in the coming days for the country’s budget. The cabinet decided to pledge land in possession of Karachi’s Jinnah Airport as the warranty to introduce the Sukuk. The Jinnah Airport owns 1,500 acres of land, with a market value of PKR 750 billion.
The State Bank of Pakistan (SBP) will design the exercises and modalities in this regard, and Meezan Bank, Alfalah Islamic Bank, and Dubai Islamic Bank will make up the Joint Financial Advisors for the Government of Pakistan (GOP) Sukuk Programme.
Previously, the government raised PKR 300 billion of Sukuk against Jinnah Airport in three issues until November 2019. It is expected that Sukuk would assist the Islamic Banks with excessive unused liquidity, and would appear positively on the balance sheets.
The Sukuk was initially planned for December/January but got delayed. Recently, the outbreak of the novel coronavirus in the country increased the need for more funds.
