Cash-strapped Pakistan to now mortgage Islamabad park for 500 billion loan

F-9 park (left), PM Imran Khan (right), images via Trip Advisor and Indian Express

Pakistan, which has been overwhelmed by economic challenges, is now considering a proposal for mortgaging the biggest park in Islamabad in exchange of 500 billion Pakistani rupees (PKR).

As per reports, the federal government of Pakistan has sought to mortgage F-9 park (Fatima Jinnah Park) and receive 500 billion PKR by issuing bonds. The park, spread over 759 acres, is named after Muhammad Ali Jinnah’s younger sister Fatima Jinnah. The proposal, raised by the Finance Division, will be taken up in the cabinet meeting on Tuesday via video link. The agenda of the proposal read, “Issuance of Domestic and International Ijara Sukuk Against Unencumbered Land of F-9 Park, Islamabad”.

In order to get the proposal to fruition, the Capital Development Authority has issued NoC (No-Objection Certificate) in advance. Reportedly, this is not the first time that Pakistan has sought to mortgage its assets for a loan. The preceding governments have also mortgaged roads, buildings and institutions and procured loans through the issuance of bonds, both national and international.

Malaysia seizes PIA plane for non-payment of dues

In a rarest of rare cases in the history of international civil aviation, Malaysian authorities had seized a Pakistan International Airlines (PIA) Boeing-777 aeroplane at the Kuala Lumpur Airport owing to non-payment of aircraft lease dues. According to reports, the PIA aircraft was seized on the orders of a local Malaysian court over the non-payment of aircraft lease dues.

Pakistan International Airlines (PIA) had leased two aircraft, including the Boeing-777, from a Vietnamese company in 2015. However, they had failed to pay the dues to the Vietnamese company. Reportedly, the authorities seized the plane after passengers had already boarded the aircraft. The aircraft’s 18-member staff also become stranded in Kuala Lumpur due to the seizure and will now quarantine for 14 days as per protocols. Earlier, Pakistan had also taken a loan from China to repay a $3 billion loan taken from Saudi Arabia. 

OpIndia Staff: Staff reporter at OpIndia