KARACHI: The Pakistan Stock Exchange (PSX) has achieved a significant milestone by surpassing the PKR 1 trillion mark in the issuance of GoP Ijarah Sukuk (GIS). This landmark achievement was reached after the successful conclusion of the 13th GIS auction on September 16, 2024, which raised an additional PKR 207 billion for the Ministry of Finance (MoF).
GIS Auctions at PSX
The GIS auctions began at PSX on December 8, 2023. Since then, there has been robust participation from banks, mutual funds, and brokers. Each auction has contributed to the growth of the Shariah-compliant government securities market. PSX has played a crucial role in offering GIS by providing a state-of-the-art auction system and supporting the entire lifecycle of the Sukuk, from issuance to maturity.
PSX’s Global Position
PSX holds a unique position among global exchanges as it facilitates the primary issuance of government debt. Through the Capital Market Infrastructure Institutions (CMIIs), PSX enables the Government of Pakistan (GoP) to raise funds efficiently. A key reason for this success is the wide variety of Sukuk offered, including discounted, fixed-rate, and variable-rate instruments. Additionally, a broad range of tenors, including 1-year, 3-year, 5-year, and 10-year Sukuk, have been introduced to cater to the diverse needs of the government and investors.
Expanding the Market
PSX’s role extends beyond facilitating an active primary market for GIS. It also supports a highly efficient secondary market, where efforts to boost liquidity are ongoing. These initiatives align with PSX’s broader objective of enhancing market depth and increasing investor participation in both the primary and secondary markets.
Leadership Acknowledgements
Mr. Nadeem Naqvi, Acting CEO of PSX, highlighted the significance of this achievement. “Crossing the PKR 1 trillion mark in GIS issuance reflects the trust investors place in PSX and the strong demand for Shariah-compliant instruments,” he said. Naqvi also pointed out that PSX’s innovative market infrastructure has allowed it to grow rapidly in less than a year.
He credited the success to the robust PSX Auction System and the New Trading System (NTS), which support the primary and secondary markets, respectively. Naqvi also expressed confidence that the GIS market at PSX will continue to flourish. He thanked the Ministry of Finance (MoF) for its trust in PSX, the National Clearing Company of Pakistan Limited (NCCPL), and the Central Depository Company (CDC) for managing these auctions.
Gratitude for Key Contributors
Naqvi extended special appreciation to the Securities and Exchange Commission of Pakistan (SECP) for their guidance and support. He also acknowledged Dr. Shamshad Akhtar’s contributions. She had initiated the GIS auction process during her time as Caretaker Finance Minister.
As PSX develops the Sukuk market further, this milestone is significant. It marks a key achievement in the growth of Shariah-compliant government securities in Pakistan.
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