Summary: For the first time in Pakistan, the volume of domestic sovereign Sukuk issuance has exceeded Rs 1 trillion. Finance Minister Muhammad Aurangzeb has termed it a major achievement of the Islamic financial system and said that Sukuk has helped in extending the tenure of government loans and reducing financial costs.
Islamabad: Finance Minister Muhammad Aurangzeb has said that for the first time in Pakistan, the volume of domestic sovereign sukuk issuance has crossed one trillion rupees, which is an important milestone for the Islamic financial system of the country.
Addressing the ceremony of issuing a domestic sovereign sukuk of one trillion rupees in Islamabad, he said that this achievement reflects the growing confidence in the Islamic financial system in Pakistan.
Muhammad Aurangzeb said that the issuance of sukuk has helped in extending the tenure of government loans and reducing the cost of borrowing. Islamic banking and sukuk markets are continuously developing.
He said that the government is determined to promote investment in accordance with Sharia principles in the country and further strengthen the Islamic financial system.
The Finance Minister stressed that the relevant institutions will have to work together for the development of the Sukuk market so that the current positive trend can be maintained.
He said that the government is making the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan (SECP) more active and effective for better regulation in the financial sector.
Muhammad Aurangzeb said that Islamic banking in Pakistan is being harmonized with the modern banking system, while adherence to Sharia principles is also being ensured.
He added that investor confidence in Islamic banking products is increasing and the government is taking steps to promote modern procedures and digital systems in this sector.
The Finance Minister also appreciated the services of Mufti Muhammad Taqi Usmani in the promotion of Islamic banking and said that he played an important role in harmonizing the Islamic financial system with modern requirements.
He expressed his determination that the government, in collaboration with relevant institutions and financial sector stakeholders, will continue its efforts to expand Islamic investment opportunities in Pakistan and further strengthen the Sukuk market.
We welcome your contributions to The Pakistan Observer, Submit your blogs, articles, press releases, news story pitches and news features.
Please send your submissions to our News Room or Editorial team.
