An article in Bloomberg discussed the prospects for Afghanistan to issue a sukuk to fund its budget deficit when international troops in the country leave (along with a lot of aid that accompanies them) in 2014. I have offered a skeptical comment to an earlier Bloomberg article that reported about a proposal to allow Islamic banking in Afghanistan.
A sukuk provides a different set of opportunities and challenges from Islamic banking. It is easier in many ways to issue a sovereign sukuk than it would be to develop a prudently regulated Islamic banking system, because the investors would demand a higher return (whether sukuk or conventional bond) based on the ability to get recourse in case the government defaults in the future………………………………………..Full Article: Source