The federal government has decided to introduce hybrid Sukuk bonds for the first time during the current fiscal year as part of its strategy to diversify financing sources, according to sources at the Ministry of Finance.
Unlike conventional Sukuk structures that rely solely on pledged assets, the new hybrid model will also allow the government to raise funds by selling commodities in the market.
Officials said a third party will be engaged to facilitate commodity sales, with the commodities being sold directly in the market as part of the financing mechanism.
Sources said the Ministry of Finance will also share the hybrid Sukuk issuance plan with the International Monetary Fund (IMF) before proceeding with the offering.
To support the issuance, the ministry has asked the National Highway Authority (NHA) to provide details of its assets that could be used for the Sukuk structure. Officials estimate the value of NHA’s assets at more than Rs. 7 trillion, compared with an estimated value of around Rs. 5.5 trillion in the previous fiscal year.
According to officials, the higher valuation of NHA’s assets will increase the government’s capacity to issue Sukuk bonds under the new financing framework.
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