Pakistan Guarantees $955 Million in Islamic Bonds to Finance Neelum-Jhelum Project

The Pakistani government has guaranteed $955 million USD worth of "sukuk" (Islamic bonds) to finance the 969-megawatt Neelum-Jhelum hydropower project in the Kashmir region.The guarantee comes after some of the project’s initial investors, including the Islamic Development Bank (IDB) and the Saudi Fund for Development (SFD), interrupted the provision of some $100 million USD in funds due to “their additional requirements/conditions,” according to a Water and Power Development Authority (WAPDA) document obtained by the Pakistan Observer newspaper.It also comes after the government late last year approved a revision the cost estimate for the project, from $2...