PSX inducts Meezan Bank as the first market maker for GoP ljarah Sukuk

KARACHI: The Pakistan Stock Exchange (PSX) has announced the induction of Meezan Bank as the first market maker for CDS-eligible government of Pakistan (GoP) Ijarah Sukuk (GIS) issued through a primary market auction at the PSX.

This addition aims to enhance liquidity in the CDS-eligible government debt securities (GDS) market through the quotation of two-way prices and to facilitate the secondary market depth of GoP Ijarah Sukuk (GIS).

Since the commencement of GIS auctions through the PSX platform on December 8, 2023, and the subsequent secondary market trading of GIS, there has been a gradual increase in retail investor participation. Meezan Bank’s induction as a market maker for GIS marks another milestone in the PSX’s journey towards becoming a world-class exchange.

Meezan Bank is already a market maker for four listed Shariah-compliant debt securities and has been a key player in the PSX’s effort to issue GIS. The bank’s expertise in Sharia principles and Islamic finance, as well as its commitment to promoting the widespread use of Islamic principles in the financial services industry, has been instrumental in paving the way for the primary market issuance of GIS through the PSX.

On the induction of the GIS market maker, MD and CEO of the PSX Farrukh H Khan stated, “The inclusion of Meezan Bank as the first market maker for GoP Ijarah Sukuk trading in the secondary market is a positive development for the PSX. This will serve as a stepping stone for the induction of more market makers for GIS at the PSX.”

Commenting on this significant milestone, Deputy CEO of Meezan Bank Syed Amir Ali added, “The development of the local Sharia-compliant debt market is a vital step towards achieving the goal of converting conventional banks into Islamic banks. It is an honour for Meezan Bank to achieve this milestone, which marks a significant step for the enhancement of growth in Pakistan’s Islamic capital markets.”

With the close of this successful induction, it is anticipated that other financial institutions will follow in the footsteps of Meezan Bank by becoming market makers, which will elevate Pakistan’s Islamic capital market to the next level.