PSX Raises Over Rs. 1 Trillion Through Issuance of GoP Ijarah Sukuk
Pakistan Stock Exchange (PSX) announced a significant milestone achievement on Thursday, with the issuance of GoP Ijarah Sukuk (GIS) through the Capital Market Infrastructure crossing the Rs. 1.0 trillion mark.
This breakthrough was achieved following the successful conclusion of the 13th GIS auction on September 16, 2024, raising additional funds for the Ministry of Finance.
The GIS Auctions began at PSX on December 8, 2023, and have since witnessed robust participation from banks, mutual funds, and brokerage firms, contributing to the growth of the Shariah-based Government Securities market. PSX has been instrumental in offering GIS through a state-of-the-art auction system and supporting the entire lifecycle of the GIS, from issuance till maturity.
PSX holds a unique position among 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 the Capital Market Infrastructure Institutions (CMIIs). A driving factor for its success is the diverse range of Sukuk on offer, including Discounted, Fixed Rate, and Variable Rate instruments, along with a wide range of tenors such as 1 Year, 3 Year, 5 Year, and 10 Year GIS to meet varying needs.
In addition to facilitating an active primary market for GIS, PSX also hosts an efficient secondary market, committed to enhancing its liquidity. This effort aligns with PSX’s broader goal of market development, which includes enhancing market depth and investor participation in both primary and secondary markets.
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Nadeem Naqvi, Acting CEO of PSX, remarked on this landmark achievement, “Reaching the Rs. 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. 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 PSX are supported by the robust PSX Auction system and the New Trading System (NTS) respectively. We are confident that the market for GIS will continue to thrive in the years to come. We extend our gratitude to the Ministry of Finance (MoF) for their trust in PSX, NCCPL, and CDC to handle these auctions and to the apex regulator, the Securities and Exchange Commission of Pakistan (SECP), for their invaluable guidance and support throughout this process. Lastly, I would like to extend my appreciation to our respected Chairperson, Dr. Shamshad Akhtar, under whose leadership as Caretaker Finance Minister this initiative of conducting GIS auctions through the PSX platform began.
