Pakistan achieves landmark Rs400bn Energy Sukuk settlement, investors’ eye more moves in Oil and Gas sector
ARIF HABIB LTD PLAYED A VITAL ROLE: CIRCULAR DEBT RESOLUTION
PSMU Exclusive:
KARACHI: In a major milestone for Pakistan’s financial and energy sectors, Arif Habib Limited (AHL)facilitated the country’s largest-ever debt market transaction with the landmark PKR 400 billion settlement involving Energy Sukuk Type: PESC-1 and PESC-2. This significant deal, aimed at resolving Pakistan’s ongoing circular debt crisis, positions the country’s energy sector on a path to much-needed stability.
The transaction, executed on the buying side for the Central Power Purchasing Agency (CPPA), involved a colossal PKR 400bn, with AHL playing a pivotal role as the trusted partner in executing Pakistan’s largest debt market NDM (Off-market Transaction). AHL also facilitated PKR 61 billion on the selling side, showcasing its prominent position in structuring and executing landmark capital market operations in the country.
More major moves in Oil & Gas:As Pakistan celebrates the successful closure of this historic sukuk deal, industry analysts are now turning their attention to a PKR 300 billion settlement expected to take place on Wednesday (tomorrow). This involves Pakistan State Oil (PSO) and a consortium of Independent Power Producers (IPPs), which will further bolster the country’s debt management efforts and provide fresh liquidity to the oil and gas sector.
This upcoming transaction is anticipated to attract significant attention from both domestic and international investors. The oil and gas sector, traditionally a major part of Pakistan’s economy, remains a critical area of focus for investors seeking exposure to energy assets in a recovering market.
The Energy Sukuk settlement is seen as a crucial step toward resolving Pakistan’s chronic circular debt issue within the energy sector, an area that has long been a source of macroeconomic instability. By introducing these Shariah-compliant financial instruments, the government is pushing forward with efforts to manage the nation’s debt load while stabilizing energy markets.
Arif Habib Limited’s instrumental role in executing this record-breaking transaction underscores its leadership position in Pakistan’s capital markets. The firm’s reputation as a trusted partner for large-scale, strategic financial operations was further solidified, marking a major achievement for Pakistan’s debt markets. AHL’s participation in facilitating the deal for CPPA—an entity critical to Pakistan’s energy infrastructure—proves its capacity to engage in high-stakes transactions and drive market momentum. Given the growing demand for energy sector reforms and investments, savvy investors are closely watching these developments, anticipating a significant upside in the oil and gas sectors as more strategic settlements and restructuring efforts are carried out.
