Pakistan to issue Ijarah Sukuk worth Rs. 150 billion against
Islamabad Sports Complex
The State Bank of Pakistan (SBP) is set to issue GoP Ijarah
Sukuk (GIS) worth Rs. 150 billion against the Islamabad Sports Complex's asset,
according to ProPakistani. The SBP plans to auction various Sukuk issues from
November to January, offering durations of 1, 3, and 5 years with fixed and
variable rental rates.
The Islamabad Sports Complex, recognized as an underlying
asset of the Pakistan Sports Board, includes identified, unencumbered, and
undisputed land surrounding the complex. These lands, identifiable by survey
numbers and area, will serve as the proposed Asset to facilitate the issuance
of GoP Ijarah Sukuk.
Government's
plan to secure Rs11.09 trillion from banks
Analysts suggest that the government continues to raise
funds through Sukuks against different assets to meet its financial needs,
aligning with the directives of the Federal Sharia Court to transition the
economy from interest-based to Sharia-based. Sukuks have become the
government's preferred choice for fundraising, saving billions compared to
T-Bills and Pakistan Investment Bonds.
Simultaneously, the banking regulatory authority has
introduced amendments regarding the eligibility of investors with an interest
in Sukuk investment. Individual investors are now allowed to explore investment
opportunities in Sukuks, while Primary Dealers, major banks, and financial
institutions will continue to make investments on behalf of their investors.
Dar
to promote Islamic finance in Pakistan
The circular issued by the SBP specifies that all investors,
excluding banks (scheduled, specialized, and microfinance), DFIs, and
Investment Banks, are eligible to submit NCBs (Non-Competitive Bids) in the GIS
auction. Banks (scheduled, specialized, and microfinance), DFIs, and Investment
Banks are not eligible to submit non-competitive bids in the Sukuk auction.
Source: Pro Pakistani