The federal government has decided to introduce hybrid Sukuk bonds for the first time during the current fiscal year as part of efforts to diversify its financing sources, according to sources in the Ministry of Finance.

Unlike conventional Sukuk structures, which are backed only by pledged assets, the new hybrid model will also allow the government to raise funds through the sale of commodities in the market.

Officials said a third party will be engaged to facilitate the commodity sales, with the proceeds forming part of the financing mechanism.

Sources said the Ministry of Finance will share the hybrid Sukuk issuance plan with the International Monetary Fund before moving ahead with the offering.

To support the issuance, the ministry has asked the National Highway Authority (NHA) to provide details of its assets that could be used in the Sukuk structure. Officials estimate the value of NHA’s assets at more than Rs. 7 trillion, compared with around Rs. 5.5 trillion in the previous fiscal year.

According to officials, the higher valuation of NHA’s assets will enhance the government’s capacity to issue Sukuk bonds under the new financing framework.