Pakistan Stock Exchange has announced a significant milestone achievement -the issuance of GoP Ijarah Sukuk (GIS),through the Capital Market Infrastructure, crossing the PKR 1.0trillion mark. This breakthrough was achieved following the successful conclusion of the 13thGIS auction on September 16, 2024 through which an additional PKR 207 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 forits 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, Mr. Nadeem Naqvi, Acting CEO of Pakistan Stock Exchange, remarked, “Reaching the PKR 1 trillion 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.
