Govt buying back Rs71bn worth securities via Bai Muajjal Sukuk

May 22, 2025 (MLN): The government is set to buy back securities worth Rs70.886 billion through the outright purchase of Ijara Sukuk (GIS VRR-19) on a deferred payment basis, also known as Bai Muajjal.

The arrangement is being facilitated by the State Bank of Pakistan (SBP) through its Domestic Markets & Monetary Management Department, in accordance with the provisions laid out in SBP-DMMD Circular No. 18 dated October 22, 2015.

The process will invite participation exclusively from all Islamic Banks and Islamic Banking Branches (IBIs).

The bids must be submitted by 12:00 PM on May 27, 2025, while the opening of bids and working arrangements will be communicated to participants separately via email.

Results of the process will also be announced on the same day, May 27, 2025.

The Ijara Sukuk to be purchased are part of the GIS VRR-19 series and will be delivered on May 27, 2025.

Deferred payment maturity dates of Bai Muajjal are as follows: the first option has a tenor of 336 days, with a maturity date of April 28, 2026, while the second offers a longer tenor of 1067 days, maturing on April 28, 2028.

Both tranches are structured to provide flexibility and Shariah-compliant investment opportunities to Islamic banking institutions.

As per the SBP, all submitted bids may be accepted or rejected at its discretion without any obligation to provide reasons.

This initiative forms part of the government’s ongoing efforts to utilise Islamic financial instruments in managing its fiscal needs while promoting the development of the Islamic finance sector in the country.

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