Pakistan has made financial history by launching its inaugural agricultural infrastructure sukuk, a Shariah-compliant bond worth Rs 2 billion designed to enhance the country’s food security and environmental sustainability.

The groundbreaking initiative involved a partnership between InfraZamin Pakistan, Sunridge Foods (Pvt) Limited, and BankIslami Pakistan, with the official launch taking place at the Pakistan Stock Exchange. This represents a significant milestone in Islamic finance, specifically targeting the agricultural sector’s infrastructure needs.

The sukuk proceeds will finance Sunridge Foods’ comprehensive modernization program, which includes developing renewable energy capabilities and constructing storage facilities like silos and warehouses. These improvements aim to strengthen Pakistan’s food distribution systems while reducing environmental impact through sustainable practices.

The financial instrument benefits from strong risk management features, including complete principal protection guaranteed by InfraZamin Pakistan and receiving the highest AAA credit rating from VIS Credit Rating Company. The sukuk attracted significant institutional investor interest and was fully subscribed, demonstrating market confidence in innovative Islamic financial products.

Specific projects funded by the sukuk include installing 1 MW wind turbines and a 0.5 MW solar power facility at Sunridge’s processing centers in Karachi and Lahore, representing the company’s broader Balancing, Modernization, and Replacement initiative.

The collaborative effort involved multiple specialized partners: AKD Securities provided financial advisory services, Al-Hilal Shariah Advisors ensured religious compliance, and Pak Brunei Investment Company served as both Investment Agent and Trustee. This sukuk demonstrates how Islamic finance can effectively channel investment toward critical national infrastructure priorities while maintaining religious compliance standards.

Original Article:

Salaam Gateway. (2025, July 28). Pakistan launches first-ever agri-infrastructure sukuk to boost food security and climate resilience. https://salaamgateway.com/story/pakistan-launches-first-ever-agri-infrastructure-sukuk-to-boost-food-security-and-climate-resilience