Salman Shah

Govt gears efforts to test international appetite for Shariah-compliant papers

The Pakistani government plans to tap international investors’ appetite by offering sukuk worth as much as $750 million for sale. The finance ministry said the structure of the sukuk will be flexible and the issue will have a maturity of at least five years. According to former finance minister Salman Shah the completion of the IMF (International Monetary Fund) programme and reclassification of Pakistan Stock Exchange to MSCI emerging market index would send a positive signal to the investors. Analysts said improved macroeconomic indicators and China-Pakistan Economic Corridor related activities are attracting positive credit ratings.

Local currency government sukuk in Pakistan

Reuters reported on 7 April that Pakistan has shortlisted six banks to manage a local currency sukuk to be mandated according to sources Reuters spoke with, those are ABN Amro Pakistan, Dubai Islamic Bank, Meezan Bank, MCB Bank, Standard Chartered Bank Pakistan, United Bank Ltd. Last month the finance minster, Salman Shah, indicated the issuance till 30 June, the end of the fiscal year. A banker familiar with the plans estimates the size at least to be Rps 20 bn (USD 318 mn).


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