Fiscal Boost for Subway Projects

The development of high-speed, decent transportation has gained traction with the allocation of funds for projects in the holy cities of Mashhad and Qom.
The government recently allocated 19 trillion rials ($67.85 million) in sukuk (Islamic bonds) to accelerate urban transportation projects in Mashhad, the shrine city of Khorasan Razavi Province.
Mashhad City Council has authorized urban managers to issue and spend 3 trillion rials ($10.71 million) of the total amount for the purchase of new vehicles for Mashhad’s public bus fleet, ISNA reported.
Sukuk is a Sharia-compliant bond that represents a portion of ownership in a portfolio of existing or future assets. The bond can help meet the immediate needs of a business or project for liquidity with no access to end-users to finance their operations.
According to official data, Mashhad has approximately three million residents and about 3,000 public buses, many of which have outlived their usefulness and must be phased out.