Sale of $1bn sukuk bonds shows investors' trust in economy: Ishaq Dar

ISLAMABAD: Federal Finance Minister Ishaq Dar, addressing a ceremony marking Pakistan’s return to the international sukuk (Islamic bonds) market today, said the country’s sale of $1 billion worth of sukuk bonds shows investors have reposed trust in the economy.

Pakistan sold its sukuk bonds estimated at around $1 billion in the international market on Wednesday, amid overwhelming response from foreign investors despite Indian aggression along the border.

Ishaq Dar said the bonds have been initially priced at 5.75 percent. The bookings from investors were valued at 2.4 billion dollars.

He said the decision to price the bonds at the lower level was taken in the country’s best interests, despite recommendations to the contrary.

The finance minister said Pakistan has been achieving all of its economic goals since the past three years. He said the country’s growth would be increased by 5 percent this year.

Ishaq Dar added that the IMF program ended in September.

The bonds will mature in 2021 with 5.5 percent rate of return. The country is expected to receive the one-billion-dollar amount on October 13.