Islamabad (Commerce Desk): The federal government has decided to establish an asset registry company to make the issuance of Sukuk bonds easier, more transparent and faster.
According to sources in the Ministry of Finance, the new company will register, verify and monitor public and private assets required for the issuance of Sukuk bonds.
State Bank Governor Jameel Ahmad said that records of all assets used in Sukuk issuance would be compiled. He explained that, unlike conventional bonds, Sukuk are not based on interest but are linked to ownership of tangible assets. Therefore, identifying each asset and verifying its ownership is essential.
He said complete details of motorways, buildings, power plants and land would be maintained in a central registry. The record would also include verification of asset ownership, value and any loans or claims against it.
According to sources, the Ministry of Finance, State Bank, Securities and Exchange Commission of Pakistan and Law Division will jointly develop the legal and Shariah framework for the project.
The proposed framework for establishing the company will also be sent to the International Monetary Fund (IMF), after which final discussions on the matter will take place.