Pakistan is moving to expand its corporate debt market as the Securities and Exchange Commission of Pakistan has issued “A Practical Guide for Corporate Issuers” to make the issuance of corporate Sukuk easier, faster and less costly.
The SECP said the new guide provides companies with a practical framework for issuing Sukuk, including a model transaction flow, sample applications and legal documents required for the process.
According to the regulator, standardized Sukuk structures can help reduce legal complexities, issuance costs and the time required to complete a transaction. The guide is aimed at making Shariah compliant financing more accessible to companies through the capital market.
Corporate Sukuk provide companies with an important avenue to raise Shariah compliant financing from the capital market. The SECP said the new guide is part of efforts to strengthen Pakistan’s corporate debt market and encourage greater use of Sukuk as a financing instrument.
The regulator said 72 Sukuk issuances during the last fiscal year raised approximately Rs. 307 billion in capital, highlighting the growing role of Sukuk in corporate financing.
The new guide brings together key elements of the issuance process to provide potential corporate issuers with a clearer path toward accessing Sukuk-based financing. The SECP said this should help make future issuances more efficient by reducing procedural uncertainty and associated costs.
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