Cash-strapped Pakistan's $1BN loan through Islamic Bond at record interest

Pakistan has raised a staggering $1BN loan with a 7-year Sukuk (Islamic Bond) at a record interest rate. The 7.95% interest rate is the highest return that Pakistan has ever paid on an Islamic Bond. In return for the loan, Pak has also agreed to pledge a portion of the Lahore-Islamabad motorway. Lahore-Islamabad motorway, Pakistan's nat'l asset built in the 1990s, is now being used to raise debt. The last Islamic Bond issued by Pakistan was in 2017, a 5-year Sukuk at a rate of 5.6%.