Islamabad, Oct 17: The issue of GoP Ijarah Sukuk (GIS) through the Capital Market Infrastructure, the Pakistan Stock Exchange (PSX) announced on Thursday a significant milestone achievement that crossed the Rs. 1.0 trillion barriers.
This innovation came about as a result of the 13th GIS auction’s successful conclusion on September 16, 2024, which raised an extra PKR Rs. billion for the Ministry of Finance.
Since the GIS Auctions began at PSX on December 8, 2023, the banks, mutual funds, and brokerage community have participated in large numbers, and each auction has helped to expand the market for government securities based on Shariah. PSX has played a vital role in the availability of GIS by offering a cutting-edge auction system and assistance throughout the GIS’s whole lifecycle, from issuance to maturity.
Among international exchanges that provide primary issuance of government debt, PSX holds a special place. In order for the Government of Pakistan (GoP) to be able to raise money through the Capital Market Infrastructure Institutions (CMIIs), PSX is essential. One of the main reasons for its success is the variety of Sukuk that it offers; these include instruments with variable, fixed, and discounted rates.
Alongside this, a variety of tenors are available, including 1 Year, 3 Year, 5 Year, and 10 Year GIS, which were added following the first auction to accommodate the differing requirements of both investors and the government.
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.
