One-year Ijarah Sukuk fetches Rs. 479 billion, exceeding the
target by Rs. 30 billion
The inaugural auction of one-year Ijarah Sukuk at the
Pakistan Stock Exchange (PSX) surpassed all expectations as investors offered a
substantial financing amount of Rs. 479 billion to the government. The auction,
which exceeded the target of Rs. 30 billion by 16 times, marked a significant
shift from the traditional State Bank of Pakistan (SBP) venue for such
auctions.
Unofficial reports indicate that Shariah-compliant banks
acquired one-year Sukuk at a variable rental rate of "T (T-bills) minus
100 basis points" at the PSX in the preceding week. This move broke the
monopoly of banks in the bond market, redirecting funds from government papers
to the private sector for economic activities and aiming to distribute profits
more widely, allowing common individuals to invest as low as Rs. 5,000.
Pakistan
to issue Ijarah Sukuk worth Rs. 150 billion against Islamabad Sports Complex
A participating banker revealed that the auction was
oversubscribed by 13 times, reaching Rs. 369 billion. The Sukuk auction was
inaugurated by Caretaker Prime Minister Anwaarul Haq Kakar at the PSX, with
Caretaker Finance Minister Dr Shamshad Akhtar also present. The PSX highlighted
this as a landmark development, hosting the primary market auction of
government debt securities (GDS) following rule changes to raise government
debt in capital markets.
Prime Minister Kakar, during the ceremony, emphasized the
collective responsibility to promote primary market auctions, citing it as a
remarkable achievement for the entire market ecosystem. He attributed the
regained investor confidence to the successful signing of an IMF standby
arrangement, the execution of the annual budget 2023-24, and improvements in
fiscal and external accounts. PM Kakar symbolized progress and prosperity by
ringing the gong, underscoring the commitment to fostering an inclusive and
robust financial ecosystem.
Government's
plan to secure Rs11.09 trillion from banks
Caretaker Finance Minister Akhtar termed it a momentous
occasion for financial markets and the Pakistani economy, highlighting the
steps taken by the Debt Management Office of the Ministry of Finance to enable
the primary market auction at the PSX. PSX MD and CEO Farrukh H Khan explained
that amendments in existing rules made the primary market auction of GDS
possible at the PSX, breaking the monopoly previously held by the State Bank.
Source: Pro Pakistani