Pakistan, Britain reaffirm their resolve to further strengthen bilateral ties

Pakistan's Planning Minister Ahsan Iqbal (right) meets UK's High Commissioner to Pakistan Jane Marriott in Islamabad, Pakistan, on January 18, 2025. (Radio Pakistan)
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Updated 19 January 2025
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Pakistan, Britain reaffirm their resolve to further strengthen bilateral ties

  • British high commissioner meets Pakistan's Planning Minister Ahsan Iqbal to discuss bilateral cooperation 
  • Iqbal highlights financial sector's importance in promoting export growth, enhancing agricultural exports

ISLAMABAD: Pakistan and the United Kingdom reaffirmed their resolve to further strengthen bilateral relations to ensure mutual economic development, state-run media reported this week. 

UK's High Commissioner to Pakistan Jane Marriott met Pakistan's Planning Minister Ahsan Iqbal on Saturday during which Pakistan's measures to improve its economy came under discussion. 

Iqbal spoke about Islamabad's efforts to eradicate basic education deprivation through public-private partnerships, provincial cooperation to enhance capacity in education, health, and human resources, and significant budget increases for higher education, state broadcaster Radio Pakistan reported. 

"Pakistan and Britain have reaffirmed the commitment to foster stronger ties and collaborative efforts for mutual growth and development," Radio Pakistan said in its report. 

The minister told the British official that Pakistan's economic strategy includes its aims to address five critical areas including exports, e-Pakistan, environment and climate change, energy and infrastructure, equity and empowerment.

He stressed the importance of Pakistan's financial sector in promoting export growth, enhancing agricultural exports, fostering industrial development and advancing critical areas such as IT, services, mining, workforce export, the blue economy, and innovation, the report said. 

Pakistan and the UK have strong military, economic and educational ties, with the latter hosting a large Pakistani diaspora.


Pakistan issues over $7 billion sukuk in 2025, nears 20 percent Shariah-compliant debt target

Updated 29 December 2025
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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.