KARACHI: The Pakistan Stock Exchange (PSX) has announced its ‘significant’ achievement: the issuance of GoP Ijarah Sukuk (GIS), through the capital market infrastructure, crossing the Rs1 trillion mark.
A PSX press release on Thursday said that the breakthrough was achieved following the successful conclusion of the 13th GIS auction on September 16, 2024 through which an additional Rs207 billion was raised for the Ministry of Finance (MoF).
GIS auctions started at the PSX on December 8, 2023 and have since witnessed robust participation from banks, mutual funds and brokerage fraternity, with each auction attributing to the growth of the Sharia-based government securities market. The 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.
The PSX enjoys a unique position amongst global exchanges that offer primary issuance of government debt. It plays a pivotal role in enabling the government of Pakistan (GoP) to raise funds through 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-, 3-, 5-, 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, the PSX also hosts an equally efficient secondary market and is committed to enhancing its liquidity which aligns with the 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 achievement, acting CEO of the Pakistan Stock Exchange Nadeem Naqvi, said, “Reaching the Rs1 trillion mark in the issuance of GIS is a testament to the trust investors have placed in the 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 the PSX, are supported by the robust PSX auction system and the new trading system (NTS) respectively.”