Power Holding Limited (PHL), a public sector entity fully owned by the Ministry of Energy, is issuing Rs200 billion debt instrument to address the liquidity constraints being faced by Pakistan’s power sector.

“This will be the first-ever debt issuance through book building in Pakistan Stock Exchange’s history and represents an important milestone,” said a PSX press statement issued on Monday. “The local bourse is playing a key role in helping the government overcome one of its biggest economic challenges i.e. power sector circular debt.”

The Pakistan Energy Sukuk-II (PES-II) is GoP-guaranteed Shariah-compliant security of Rs200 billion which is 100pc Statutory Liquidity Requirement (SLR) eligible, having a 10-year maturity period with semi-annual profit payment for investors.

This is the second issue of the energy sukuk by PHL, the statement said, adding that the government of Pakistan decided to issue the debt through the PSX to ensure transparency and competitive bidding.