Federal cabinet approves 'plan to pledge airports, motorways against Sukuk bonds': sources

The decision was taken in a meeting chaired by Prime Minister Imran Khan in the federal capital.

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Sources claimed the cabinet accorded approval of getting national assets pledged against domestic and international Sukuk bonds in order to seek loans.

Earlier, the finance ministry had requested the cabinet that there is an urgent need to identify new unencumbered assets to ensure uninterrupted issuance of Ijara Sukuk in the domestic as well as international capital markets.

The federal cabinet had directed in January this year to identify options of underlying assets for Sukuk issuances.

Sources said the finance ministry has identified M-1 (Islamabad-Peshawar) and M-3 (Pindi-Bhatian-Faisalabad) motorways, Islamabad Expressway and Islamabad, Lahore and Multan international airports.

It also wants to pledge the only remaining section of the Lahore-Islamabad motorway to borrow from the lenders, they added.

At present Islamabad-Chakwal section of M2 Motorway is unencumbered and the rest of the motorway has been pledged against the debt. The M1 and M3 are also free of any charges.