Daily Times

ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet approved to issuance of Sukuk, 2016 worth of $ 750 million to $ 1 billion by pledging one portion of Islamabad-Lahore Motorway.

The ECC met on Monday at the Prime Minister’s Office under the chair of the Finance Minister Ishaq Dar.

The meeting approved the proposal of Finance Ministry for the issuance of Sukuk Bonds, 2016. The committee was informed that as the international rating agencies have improved the ratings of Pakistan; the current issue of the Sukuk is expected to bring in a better pricing.

The Finance Division also requested the exemption of certain taxes and duties for making the sale of International Sukuk bonds a desirable transaction for the foreign investors, which was approved by the ECC.

Source told this scribe that government wants to issue the International Sukuk bonds ranging from $ 750 million to $1 billion by pledging one portion of Islamabad-Lahore Motorway to maintain a stable foreign exchange regime because the continuous fluctuating commodity prices in the international markets would further impact Pakistan export’s earning, so it is important to raise fresh financing form the capital market by issuing international sukuk.

The meeting approved the summary presented by Ministry of Industries and Production for the reduction in price of imported urea fertilizer lying with NFML. Earlier, the committee had fixed the price of the imported urea for Rs 1,310 per bag. Meanwhile, the ECC had formed a committee headed by Industries and Production secretary to propose steps for the enhancement of sales of the imported urea. The committee in meeting presented its report and suggested measures to boost the sales and recommended reduction in price. The ECC, after detailed deliberations, reduced the price to Rs 1,200 per bag.