The Government of Pakistan has decided to establish a new asset registry company to make the issuance of Sukuk bonds more efficient, transparent and streamlined.
The proposed company will maintain a centralised record of public and private assets that may be used for Sukuk issuance. The system is expected to verify each asset’s ownership, market value and legal status, helping reduce administrative and legal complications in the process.
According to sources in the Ministry of Finance, the company will be responsible for registering, verifying and monitoring assets used to back Sukuk bonds. The initiative aims to bring asset-related information under a single system and improve transparency in the issuance process.
State Bank Governor Explains the Need for an Asset Registry
State Bank of Pakistan Governor Jameel Ahmad, speaking to Dunya News, said a complete record would be maintained of all assets used for Sukuk issuance.
He explained that, unlike conventional bonds, Sukuk are structured around underlying assets and are not based on interest payments. Therefore, identifying the assets and establishing their ownership are essential requirements.
The proposed registry is intended to ensure that the assets used in Sukuk transactions can be properly identified and their legal status verified.
Motorways, Government Buildings and Power Plants to Be Registered
Under the proposed system, a wide range of assets will be included in the central registry, including:
- Motorways and other infrastructure.
- Government-owned buildings.
- Power plants.
- Land and other eligible properties.
The registry will contain details of each asset’s ownership and current value, as well as information about any outstanding loans, mortgages, liens or legal claims attached to it.
This verification process is intended to ensure that assets used for Sukuk issuance have a clear legal status and can meet the relevant requirements.
Proposed Framework to Be Discussed with the IMF
According to sources, the Ministry of Finance, State Bank of Pakistan, Securities and Exchange Commission of Pakistan (SECP) and Law Division will work together to develop the legal and Shariah framework for establishing the new company.
The proposed framework, including the company’s formation and operating procedures, will also be shared with the International Monetary Fund (IMF) for consultation and further discussions.
The government aims to establish a system through which the availability, ownership and legal standing of assets intended for Sukuk issuance can be assessed through a centralised mechanism.
If implemented effectively, the initiative could help simplify the issuance process, strengthen transparency and improve the management of assets used in Pakistan’s Islamic financing arrangements.
