Pakistan has issued $1 billion Islamic sukuk in the international market at 7.95 percent interest rate for a period of seven years.

An official of Finance Ministry on condition of anonymity confirmed that the Islamic bond has been issued; however, information with regard to subscription remains unclear. The inflow would boost the country’s foreign exchange reserves and help arrest the rupee slide.

The process of marketing and book-building the bond was started by joint lead managers — Dubai Islamic Bank, Standard Chartered Bank, Credit Suisse and Deutsche Bank.

The government decided to raise over $3 billion from the international market through issuance of Eurobond/international sukuk in the budget for the ongoing fiscal year.

This report was first published in Business Recorder on Jan 25, 2022.