PSX raises over Rs1tr through GoP Ijarah Sukuk

October 17, 2024 (MLN): Pakistan Stock Exchange's (PSX) issuance of GoP Ijarah Sukuk (GIS), through the Capital Market Infrastructure, has crossed the Rs1 trillion mark.

This breakthrough was achieved following the successful conclusion of the 13th GIS auction on September 16, 2024 through which an additional Rs207 billion were raised for the Ministry of Finance (MoF).

The GIS Auctions started at PSX on December 8, 2023, and have since witnessed robust participation from the banks, mutual funds and brokerage fraternity, with each auction attributing to the growth of the Shariah based Government Securities market.

PSX has been instrumental in the offer of GIS through provision of a state-of-the-art auction system and support for the entire lifecycle of the GIS, from issuance till maturity.

PSX enjoys a unique position amongst global exchanges that offer primary issuance of Government Debt.

PSX plays a pivotal role enabling the Government of Pakistan (GoP) to raise funds through the Capital Market Infrastructure Institutions (CMIIs). A driving factor for its success is the diverse range of Sukuk on offer; these include Discounted, Fixed Rate, and Variable Rate instruments.

This is accompanied by a wide range of tenors on offer – 1 Year, 3 Year, 5 Year, and 10 Year GIS – that were added after the inaugural auction to meet the varying needs of the  Government and investors alike.

In addition to facilitating an active primary market for GIS, PSX also hosts an equally efficient secondary market and is committed to enhancing its liquidity which aligns with PSX’s broader goal of market development.

This effort of market development includes enhancing market depth and investor participation in the primary and secondary markets.

Speaking about this landmark achievement, Nadeem Naqvi, Acting CEO of Pakistan Stock Exchange, remarked, "Reaching the Rs1tr mark in the issuance of GIS is a testament to the trust investors have placed in PSX and the ongoing demand for high-quality Shariah compliant instruments.

"Our commitment to innovation and market infrastructure has helped us grow rapidly in less than a year, and we continue to improve the experience for all our market participants.

"The primary and secondary markets for GIS at PSX, are supported by the robust PSX Auction system and the New Trading System (NTS) respectively.

"We are confident that the market for GIS will continue to thrive in the years to come. We extend our gratitude to the Ministry of Finance (MoF) for their trust placed in PSX, NCCPL and CDC to handle these auctions and to the apex Regulator, the Securities and Exchange Commission of Pakistan (SECP), for their invaluable guidance and support throughout this process.

"Lastly, but very importantly, I would like to extend my appreciation and due acknowledgement that this initiative of conducting GIS auctions through the PSX platform began under the leadership of our respected Chairperson, Dr. Shamshad Akhtar, when she was the Caretaker Finance Minister.”

Press Release