Growth of Sukuk and its Role in the Economic Development of Pakistan

Abstract

In the course of recent decades, the Sukuk (Islamic security or Islamic Bond) industry
has risen as one popular segment of an aggressive and exhaustive Islamic Financial
Market. The development of the Sukuk in Pakistan has demonstrated a great
advancement in the course of the last one and half decades. Actually, sukuk develop
globally with a positive pattern. The main purpose of this study is to investigate the
development of sukuk during the past 10 (2006 to 30 Jun 2016) years in Pakistan. For
this reason, this study will emphasize on a few regions including the development of
sukuk, compare the growth of Sukuk in terms of money, and find the future outlook of
Sukuk market in Pakistan, look for the most issued Sukuk in Pakistan and to point out
the role of Sukuk in economic development of Pakistan. This study scans that Sukuk
as an instrument of Islamic capital markets can be used to achieve the economic
development of a country. In spite of the quick development of other financial
instruments, we expect the developments of Sukuk to outpace as this instrument gives
chances to beat a more extensive investor.