Islamic financing is always provided for doing business or trading, it is relatively difficult for the recipients of Islamic funds to “run away” with the money. In international transactions, if equity-based tools of Islamic finance are used to bring foreign capital into Pakistan, technically the new injection of foreign capital into the country will not lead to an increase in national debt.
Even in the case of the government using sukuk for raising debt-based shari’a compliant capital, the financing will always be tightly linked to an already exiting asset or will be used for creating new assets………………………………………Full Article: Source