ISLAMABAD: Pakistan’s top investment body reviewed the country’s economic engagements with Middle Eastern states on Wednesday, focusing on mechanisms to implement recently signed memoranda of understanding (MoUs) and agreements in the region at the earliest.
The Special Investment Facilitation Council (SIFC), a civil-military hybrid forum, was established in July last year to fast-track decision-making and promote investment from foreign nations, particularly from the Gulf countries.
The council has helped the country sign billions of dollars of deals with countries like the United Arab Emirates and Kuwait where Pakistan’s official delegation was led by Caretaker Prime Minister Anwaar-ul-Haq Kakar in November while looking for economic opportunities and foreign investment.
Kakar also chaired the 8th meeting of SIFC’s Apex Committee to examine progress on projects carried out in key economic sectors and determine plans for timely realization of the envisaged investments.
“The Committee appreciated the enhancing level of economic engagements with friendly countries including finalization of Bilateral Investment Treaty with Kingdom of Saudi Arabia and Qatar as well as signing of MoUs and Framework Agreements with United Arab Emirates and State of Kuwait respectively,” said an official statement released by the Prime Minister’s Office after the meeting.
“The forum gave directions to convert these sovereign commitments into economic reality at fast pace,” it added.
The SIFC reviewed progress on various measures taken by the government to improve the investment climate while approving policy level interventions, such as strengthening of domestic dispute resolution mechanism, to facilitate investors.
It also examined progress on privatization process and appreciated the collaborative approach of various stakeholders.
The participants of the meeting expressed firm resolve to act against smugglers, hoarders and market manipulators, saying such elements had negatively impacted the country’s economic trajectory.
Chief of Army Staff General Asim Munir, who is part of the committee, assured the unwavering support of the armed forces to help the government in its endeavor to strengthen the national economy.
The prime minister directed all stakeholders to vigorously pursue various SIFC initiatives to ensure their accomplishment within the stipulated timeframe.
Pakistan’s investment body reviews economic progress, seeks swift implementation of Middle East deals
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Pakistan’s investment body reviews economic progress, seeks swift implementation of Middle East deals
- Special Investment Facilitation Council helped Pakistan sign billions of dollars of deals with Kuwait, UAE last year
- The SIFC reviewed progress on various measures taken by government to improve Pakistan’s investment climate
Pakistan issues over $7 billion sukuk in 2025, nears 20 percent Shariah-compliant debt target
- Finance Adviser Khurram Schehzad says this was the highest-ever Sukuk issuance in a single calendar year since 2008
- Pakistan’s Federal Shariat Court ordered in 2022 the entire banking system to transition to Islamic principles by 2027
ISLAMABAD: Pakistan’s Finance Adviser Khurram Schehzad on Monday said the country achieved a landmark breakthrough in Islamic finance by issuing over Rs2 trillion ($7 billion) sukuk this year, bringing it closer to its 20 percent Shariah-compliant debt target by Fiscal Year 2027-28.
A sukuk is an Islamic financial certificate, similar to a bond, but it complies with Shariah law, which forbids interest. Pakistan’s Federal Shariat Court (FSC) had directed the government in April 2022 to eliminate interest and align the country’s entire banking system with Islamic principles by 2027.
Following the ruling, the government and the State Bank of Pakistan (SBP) have undertaken a series of measures, including legal reforms and the issuance of sukuk to replace interest-based treasury bills and investment bonds.
“In 2025, the Ministry of Finance (MoF) through its Debt Management Office, together with its Joint Financial Advisers (JFAs), successfully issued over PKR 2 trillion in Sukuk,” Schehzad said on X, describing it as “the highest-ever Sukuk issuance in a single calendar year since 2008 by Pakistan.”
Pakistan made a total of 61 issuances across one-, three-, five- and 10-year tenors, according to the finance adviser. The country also successfully launched its first Green Sukuk, a Shariah-compliant bond designed to fund environment-friendly projects.
He said the Green Sukuk was 5.4 times oversubscribed, indicating investor demand was more than five times higher than the amount the government planned to raise, which showed strong market confidence.
“The rising share of Islamic instruments in the government’s domestic securities portfolio (domestic debt) underscores strong momentum, growing from 12.6 percent in June 2025 to around 14.5 percent by December 2025, clearly positioning the MoF to achieve its 20 percent Shariah-compliant debt target by FY28,” Schehzad said.
“This milestone also reflects the structural deepening of Pakistan’s Islamic capital market, sustained investor confidence, and the strengthening of sovereign debt management.”
He said Pakistan was strengthening its government securities market by making it more resilient, diversified, and future-ready, supported by a stabilizing macroeconomic environment, a disciplined debt strategy, and a clear roadmap for Islamic finance.
