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Sukuk as an Alternative Source of Public Debt
Abstract
Public debt is a prime source of government revenue to finance budget deficit. Developing countries have been relying on public debt to cater the needs of fiscal expenditure. With the emergence of Islamic banking and finance across the globe, Muslim governments have introduced Sukuk (Islamic Bonds) to generate funds by the governments to meet their expenditure. The present study aims to discuss the possibilities of introducing Sukuk as an alternative way of financing public expenditure in Pakistan by replacing other conventional modes of financing in the future. The study will discuss the viable options available to the Government of Pakistan to offer Sukuk instead of bonds as a means of raising funds from abroad.
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