Sukuk Development in Pakistan

The chapter discusses Pakistani Sukuk history and prospects. Pakistan is the world's second-largest Muslim country, with an Islamic finance industry that dates back to the early 21st century. A substantial portion of Pakistan's Islamic finance industry is funded by investors and financiers from various Gulf nations, who have long-standing connections with Pakistan's corporate leaders. The unique characteristic of this Muslim nation is that the constitution as well as the public force of the nation urge the government to launch Riba-free economy. The Sukuk issuances have been in infancy stage. The SMEs sector and government funding sector are still to be explored. Ijarah Sukuk are mostly issued and permitted by Shariah scholars of Pakistan.