Pakistan's Sukuk market grows 22% annually, foreign investment remains weak

Pakistan’s Sukuk market has expanded at an annual compound rate of about 22%, while overseas participation remains weaker than the finance minister wants, Profit by Pakistan Today reported. Senator Muhammad Aurangzeb spoke at an event marking Rs10 trillion of sovereign Sukuk issuance and the launch of hybrid and shorter-tenor instruments.

The new government instruments include three-month and six-month Sukuk, intended to broaden investment choices and help build an Islamic yield curve. Aurangzeb called for banks, primary dealers and brokers to draw more foreign portfolio investment, and said digital platforms could widen retail access. The Ministry of Power has also authorised the National Grid Company to pursue its first listed Sukuk, a transaction that could serve as a reference for other corporate issuers. Meezan Bank’s president and CEO and a member of its Shariah board also spoke in support of Sukuk development.