The rise of the #Sukuk

The financial crisis of 2008-09 shifted the world's focus towards greater accountability, enhancement in transparency, improvement in governance and a strict limit on leveraging. This has persuaded the world to look towards Islamic finance as a viable financial alternate. The asset-backed nature of Islamic financial transactions, in addition to the prohibition on speculative activities make it a more stable system than its conventional counterpart. Sukuk is being used by many developing countries as a tool of fiscal policy for economic development. Projects like roads, railways, airports and hospitals etc, are particularly appropriate for Sukuk financing. The Pakistani government has issued total 18 domestic Sukuk and three international Sukuk. The financing of infrastructure developmental projects can be achieved through issuance of Sukuk.