Sukuk against assets: NHA allows Finance Div to raise funds

The National Highway Authority (NHA) Executive Board has approved the issuance of a non-objection certificate (NOC) to the Finance Division for raising funds by issuing domestic or international Sukuks and Islamic Naya Pakistan Certificates (INPC) using its unencumbered assets.

Official documents revealed that the NOC was issued to Finance Division against 62,480 kanals assets of NHA for issuance of domestic and international Sukuks and INPC.

The unencumbered assets of NHA against which the Sukuks and INPC would be issued include 27,905 kanals in Ormara district, 17,042 kanals in Gwadar and Jiwani district of Makran Coastal Highway (N-10), 6,172 kanals of Grand Trunk Road (N-5) in Peshawar and Nowshera districts, 11,361 kanals of Indus Highway project (N-55) in Peshawar, Kohat, Karak, Bannu, Lakki Marwat and D.I. Khan districts and 12,604 kanals in Peshawar, Kohat, Karak, Lakki Marwat, Bannu and D.I. Khan districts.

According to the budget documents for the fiscal year 2022-23, the government of Pakistan Ijara Sukuk bonds are issued through Pakistan Domestic Sukuk Company Limited. The Sukuk are not redeemable before maturity. The profit on the Sukuk is payable bi-annually on the rental rate to be announced by the State Bank of Pakistan (SBP). Against the budget estimates of Rs. 1,200 billion for the year 2021-22, the revised estimates were projected at Rs. 1,725 billion. The budget estimates for the years 2022-23 are estimated at Rs. 1,200 billion.

The government has also budgeted Rs. 372 billion from Euro bond/ international Sukuk for 2022-23 against Rs 560 billion budgeted for the last fiscal year which was revised to Rs. 342.544 billion.

The Board also referred several issues to the Audit Committee of the NHA Executive Board (NHEB) to pursue the problems faced by the Authority with the Finance Division and Federal Board of Revenue (FBR).

The Board also deliberated on the construction of balance works of package-III Gwadar-Ratodero Road M-8 The Board allowed to invite state-owned entities (SOEs) under Rule 42 (f) of PPRA to submit bids for the Construction of Gwadar Ratodero Road (M-8) at risk and cost of the previous contractor M/s Nazir-AM (JV) due to flood emergency in Balochistan.

(Source: National print and online media with input from social media and local sources).

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