Pakistan is taking steps to make it easier for companies to raise funds through Sukuk, with the Securities and Exchange Commission of Pakistan (SECP) introducing a new guide aimed at making issuance faster, simpler and less expensive.

The SECP has issued “A Practical Guide for Corporate Issuers”, providing companies with a step-by-step framework for launching corporate Sukuk through Pakistan’s capital market.

The guide includes a model transaction process, sample applications and the key legal documents required to complete a Sukuk issuance.

According to the regulator, using standardized Sukuk structures can reduce legal complications, lower issuance costs and shorten the time needed to complete transactions.

The initiative is designed to give companies clearer access to Shariah-compliant financing and encourage them to use the capital market as an alternative source of funding.

Corporate Sukuk allow businesses to raise financing from investors without relying solely on conventional debt. The SECP said promoting Sukuk is also part of its broader efforts to deepen Pakistan’s corporate debt market.

The growing use of the instrument is reflected in the issuance figures. A total of 72 Sukuk were issued during the last fiscal year, raising around Rs. 307 billion, according to the regulator.

The new guide consolidates important requirements and procedures into a single framework, giving potential issuers a clearer understanding of how to proceed with a Sukuk transaction.

The SECP expects the standardized approach to reduce uncertainty, improve efficiency and bring down some of the costs associated with corporate Sukuk issuance, potentially encouraging more companies to tap the market for Shariah-compliant funding.