Economic Structural Reforms and Sovereign Assets-Backed Sukuk in Pakistan: A Systematic Literature Review

Abstract

Purpose: The continuous increase in internal debts without the reciprocal implementation of economic reforms proportionately increase the cost of goods for the economic growth of Pakistan, which ultimately caused serious economic problems in an economy. The core purpose of conducting this study is to propose workable /attainable solutions by imposing economic structural reforms and sovereign asset-backed Sukuk to overcome the economic problems of Pakistan.

Design/Methodology/Approach: This study consist of an In-depth analysis consists of a detailed description of the theory and conceptual framework to support the research objective of this study through a systematic literature review.

Findings: The Study found that private-public partnerships to be financed through the issuance of sovereign Asset-Backed Sukuk which can ultimately protect investor’s risk.

Implications/Originality/Value: This study also recommended that by using Assets- Backed Sukuk, an economy can increase in agriculture and industrial goods, increase in exportable goods that support the current account deficit, elimination of unfavorable balance of payments, removal of fiscal deficit and leads towards the sole objective of sustainable economic growth of Pakistan.