PSX rolls out first-ever Bai' Muajjal auction for govt sukuk

October 07, 2025 (MLN): Following the guidance from the Ministry of Finance's Debt Management Office (DMO), the Pakistan Stock Exchange (PSX) is spearheading a major development in the capital market by launching its inaugural Bai' Muajjal Auction for Government of Pakistan Ijarah Sukuk (GIS).

This move, effective Wednesday, October 8, 2025, is part of ongoing efforts to bolster the GIS primary market and further the cause of Shariah-compliant financing activities in the country.

The new auction mechanism centers on a Bai' Muajjal, a deferred payment sale contract rooted in Islamic finance.

Key Auction Details:

The debut auction, taking place on Wednesday, October 8, 2025, from 11:00 a.m. to 12:00 p.m., focuses on the 1-Year GIS Discounted instrument with the code P01GIS201025.

• Target Amount: The DMO has set a target of PKR 60 Billion for this auction.
• Sukuk: The instrument is a 1-Year Fixed Rate GIS Discounted Sukuk, originally issued on October 21, 2024, with an actual maturity date of October 20, 2025.
• Deferred Sale Terms: The Bai' Muajjal component will have a tenor of 6 Months (182 Days), with a maturity date of April 9, 2026.
• Settlement: The auction settlement day is set for Thursday, October 9, 2025.

Participation and Process:

The move, executed in collaboration with the National Clearing Company of Pakistan Limited (NCCPL) and the Central Depository Company of Pakistan Limited (CDC), restricts eligibility for the Bai' Muajjal auction to specific investor classes.

• Eligible Participants: Only Commercial Banks, Islamic Banks, and Mutual Funds (including Pension Fund/Provident Funds investor categories) are eligible to participate.
• Bidding: Participants may only place Competitive bids-for-sell. The minimum bid size is a Face Value of PKR 25 Million and its multiples, with the face value per Sukuk at PKR 5,000.
• Settlement Protocol: Successful bidders must transfer the exact face value of the Sukuk to the Ministry of Finance's (MoF) CDC IAS account on the settlement date, between 9:00 a.m. and 12:00 p.m..
• New Security: After settlement, the Sukuk's face value will be credited to a new Bai' Muajjal symbol by the CDC, which will be non-tradeable and non-transferrable, though it will be SLR eligible.
• Final Payment: NCCPL will record the successful participants' receivable amount and pay the Bai' Muajjal amount on the April 9, 2026 maturity date. The original P01GIS201025 security will be delisted and revoked upon its original maturity date of October 20, 2025.

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