Pakistan Makes Coupon Payment on $1 Billion Sukuk to Sharjah Islamic Bank

Sharjah Islamic Bank has received a scheduled coupon payment for its holdings of Pakistan’s $1 billion Sukuk issued in January, Bloomberg reported Monday. In a statement made to the publication, the State Bank of Pakistan confirmed the development and said “Pakistan’s Sukuk coupon payment has been executed and all debt repayments during this week are on track, including the one due on August 3”. Topline Securities CEO Muhammad Sohail said that a few Bankers have confirmed to him that Pakistan has paid around US$ 40 million coupon on its Dollar Sukuk that was due on July 31. The central bank further said that all external debt payments are being executed on the due dates as per agreements. Ali Wahab, the head of Sharjah Islamic Bank’s debt capital markets also confirmed the development and told the publication that the coupon payment will help in allaying the fears of investors. The Ministry of Finance and the State Bank of Pakistan (SBP) in a joint statement on Sunday said that the government has planned an extra cushion of $4 billion over the next 12 months to bolster Pakistan’s foreign exchange reserves position. In FY23, Pakistan’s gross financing needs will be more than fully met under the ongoing IMF program. The financing needs stem from a current account deficit of around $10 billion and principal repayments on the external debt of approximately $24 billion, the statement said.