The Executive Board of the National Highways Authority (NHA) approved the issuance of a No-Objection Certificate (NOC) to the Finance Division for raising funds by issuing domestic/international Sukuks and Islamic Naya Pakistan Certificates (INPC) using the unencumbered assets of the NHA.
NHA official said that the Finance Division had been issued the NOC against 62,480 kanals assets of the NHA to issue domestic and international Sukuk and INPC.
The decision was taken in a board meeting which was chaired by chairman NHA Captain (retired) Muhammad Khurram Agha.
The NHA unencumbered assets against which domestic/international Sukuks and INPC would be issued by the Finance Division include:
- 27,905 Kanal and 18 marla in Ormara district
- 17,042 Kanal and 10 marla in Gwadar and Jiwani district of Makran Coastal Highway (N-10)
- 6,172 Kanal and 15 marla of Grand Trunk Road (N-5) in Peshawar and Nowshera districts
- 11,361 Kanal and 11 marla of Indus Highway project (N-55) in Peshawar, Karak, Kohat, Lakki Marwat, Bannu, and DI Khan districts
- 12,604 Kanal and four marlas in Peshawar, Karak, Kohat, Lakki Marwat, Bannu, and DI Khan districts.
Meanwhile, the budget documents for the fiscal year 2022-23 revealed that the government of Pakistan Ijara Sukuk bonds is issued through Pakistan Domestic Sukuk Company Limited. There is no redeemability before the maturity of the Sukuk.
The Sukuk profit is payable bi-annually on a rental rate which will be announced by the State Bank of Pakistan. The revised estimates were expected at Rs 1,725 billion against the budget estimates of Rs 1, 200 billion for the year 2021-22. While the budget estimates for the years 2022-23 are projected at Rs 1,200 billion.
Furthermore, the Board also discussed numerous issues with the Audit Committee of the National Highways Authority Executive Board (NHEB) to address the problems faced by the NHA with the Finance Division and the Federal Board of Revenue (FBR).
These issues are:
- NHA has tax problems with FBR against the transaction executed by the federal government in the form of Sukuk Bonds, which is unfair.
- Sukuk bonds issued earlier via NOC by NHA are now matured but not released yet. The issue is to be taken up with Finance Division.
- A summary for extension up to September 30, 2022, has already been presented to Finance Division for forwarding Business Plan to the Economic Coordination Committee (ECC) of the Cabinet. The process must be expedited.