Government Decides to Set Up Asset Registry Company for Sukuk Bonds

Islamabad: The government has decided to set up an asset registry company to facilitate the issuance of sukuk bonds. Sources in the Finance Division said the new company will be established to make sukuk issuance easier, more transparent and faster, and will register, verify and monitor the public and private assets required for issuing sukuk.

Governor of the State Bank Jamil Ahmad told a private TV channel that a record will be kept of the assets to be used for sukuk. He said that, unlike conventional bonds, sukuk are based on ownership of real assets rather than interest.

Jamil Ahmad said the identity and ownership of all assets must be established. Motorways, buildings, power plants and land will be fully recorded in a central registry, and each asset’s ownership, value and any loan or claim against it will be checked.

The Finance Division, the State Bank, the SECP and the Law Division will develop the legal and Shariah framework. The framework for setting up the company will also be sent to the IMF, where final discussions will take place.