Government raises Shariah-compliant debt worth 200 billion

Prime Minister Imran Khan has said that, the government raised Shariah-compliant debt worth 200 billion, which is the proof of strong market confidence in the business policies of Pakistan Tehreek e Insaf.

Prime Minister Imran Khan wrote on his official twitter:

Landmark financial innovation with Rs 200 bn Sukuk issued through competitive book building at PSX. Oversubscribed by 170%, reflecting a strong market confidence in our Govt’s policies. As a result govt saved Rs18 billion – savings that can now be used for welfare of the people.

Landmark financial innovation with Rs 200 bn Sukuk issued through competitive book building at PSX. Oversubscribed by 170%, reflecting a strong market confidence in our Govt's policies. As a result govt saved Rs18 billion – savings that can now be used for welfare of the people.

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— Imran Khan (@ImranKhanPTI) May 20, 2020

Let it be known that according to media reports, is for the first time in history that the government has used the PSX platform to raise funds. It helped the government acquire financing at a comparatively lower rate of return as a significantly higher number of financial institutions and rich individual investors participated in the bidding. The rate of return is 90 basis points lower than the return on debt, which the government last year raised directly from seven to eight Islamic banks in a bid to reduce the circular debt.