Pakistan on Monday raised a $1 billion loan through the Sukuk bond at a 7.95% interest rate -- which is the highest cost that the country has agreed to pay in its history on an Islamic bond. This pulled down the gross official foreign exchange reserves to $17 billion as of January 14. Pakistan has issued the 7-year tenor asset-backed Sukuk bond to raise $1 billion at an interest rate of 7.95%, the Ministry of Finance confirmed to The Express Tribune. The key difference between the Islamic Sukuk and traditional Eurobond is that the Islamic bond is backed by an asset that attracts less interest rate. However, the government has paid the interest rate on an asset-backed bond, which is higher than the traditional tenor bond.

Source: The Express Tribune January 25, 2022 08:37 UTC