Pakistan Raises Rs1.2 Trillion via Islamic Bonds
Pakistan has achieved a major breakthrough in the financial sector, raising over Rs1.2 trillion (Rs12 trillion) through the historic issuance of 15-year zero-coupon Islamic bonds.
The bonds were offered in a government auction held today, which was well-received by investors.
This is the first time that a long-term Islamic bond of this kind has been introduced, from which Rs47 billion was raised in this regard alone.
The specialty of zero-coupon bonds is that they do not pay annual interest, but the entire amount is paid in a lump sum at the maturity of the bond, i.e. after 15 years.
According to experts, this move will relieve the government from the pressure of paying short-term debt and create continuity in fiscal planning.
The dynamic investment in the auction is proof that investors have confidence in Pakistan’s economic policies and reforms.
Finance Minister Senator Muhammad Aurangzeb said that the issuance of 15-year zero coupon Islamic bonds is not only a sign of a better debt strategy but also an important step towards promoting Islamic finance.
He said that the government is adopting innovative methods to manage public debt wisely, provide alternative options to investors and ensure financial stability.
According to the Ministry of Finance, the average repayment period of local loans has increased from 2.7 years to 3.75 years, which is a testament to financial sustainability.
Now not only banks but also insurance companies and pension funds are investing in government bonds, which has broadened the scope of investment.
The announcement said that the ministry is also working to provide investment opportunities in Islamic bonds for the common citizens, so as to increase financial inclusion and promote the trend of savings.
Despite the global uncertainty, this successful auction shows that Pakistan’s economy is on a positive path and investor confidence is recovering.
