KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday described the first primary market auction of the country’s one-year Ijarah Sukuk as a “resounding success” that attracted over Rs481 billion ($1.7 billion) of bids, calling it a useful addition to the product suite offered by the equity market which would further expand and solidify the investor base.
Sukuk is an Islamic financial certificate that represents ownership in a tangible asset or a pool of assets. It is similar to a bond but is structured in a way that complies with Islamic law, which prohibits interest-based transactions.
Last week, the government tapped into the Islamic bond market for retail investors by auctioning off Rs30 billion ($105.8 million) of Ijarah Sukuk at PSX in what was widely viewed as a groundbreaking development to strengthen the national economy.
The ceremony was also attended Caretaker Prime Minister Anwaar-ul-Haq Kakar and Finance Minister Dr. Shamshad Akhtar.
“The auction which took place on December 8, 2023, via the Exchange, heralds a new beginning for raising the GDS [Government Debt Security],” the PSX said in a statement. “Against the target of the Rs30 billion Sukuk, bids accepted amounted to Rs36.068 billion whereas the total bids received amounted to Rs481.307 billion.”
It said that as many as 172 investors participated in the bidding process in which 132 succeeded.
“We are truly proud of this remarkable achievement which was on the back burner for a long time,” the PSX statement quoted the finance minister as saying. “We have now succeeded in implementing the Government Debt Securities issue through the Stock Exchange with the first primary market auction of this GoP Ijarah Sukuk held on December 8, 2023. This will substantially benefit the [government] by diversifying the investor base, as well as providing new investment opportunities to investors.”
Chairman Securities and Exchange Commission of Pakistan Akif Saeed also maintained government securities constituted an important tool for the development of the capital market, adding the launch of GDS at PSX was just the beginning.
He urged the equity market, brokers, insurance companies, and asset managers to concentrate their efforts on marketing in order to attract new investors to the capital market.
PSX managing director Farrukh H. Khan said the primary market auction had generated interest from a large number of investors.
“This defines a watershed moment for the capital markets and indeed for Pakistan’s economy,” he added while expressing his gratitude to the government and the SECP.
PSX says first Islamic bond auction exceeded expectations, attracting over $1.7 billion of bids
https://arab.news/zx43q
PSX says first Islamic bond auction exceeded expectations, attracting over $1.7 billion of bids
- The auction was held at the equity market last week and was attended by the interim PM of the country
- It was viewed as a groundbreaking development that could strengthen the national economy of Pakistan
Pakistan expands crypto engagement with appearance at Mar-a-Lago finance forum
- Pakistan Virtual Assets Regulatory Authority Chairman Bilal bin Saqib attends World Liberty Financial event at Trump’s Mar-a-Lago estate
- Discussions focused on future of global financial infrastructure, digital assets, stablecoins, capital markets innovation, says Saqib’s office
ISLAMABAD: Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman and Minister of State Bilal bin Saqib joined global finance leaders at an event hosted by World Liberty Financial, a crypto venture linked to US President Donald Trump’s family, Saqib’s office said on Thursday.
The event was hosted by World Liberty Financial, a crypto-based finance platform launched in September 2024 linked to Trump’s family. According to Saqib’s office, the gathering was held at Mar-a-Lago, the private estate and club owned by Trump in Florida.
Speakers and attendees at the event included David Solomon, chairman and CEO of Goldman Sachs, Adena Friedman, chairperson and CEO of Nasdaq as well as Lynn Martin, president of the New York Stock Exchange, Saqib’s office said. The event was organized and hosted by Eric Trump and American businesspersons Zach Witkoff and Alex Witkoff.
“Discussions focused on the future of global financial infrastructure, digital assets, stablecoins, capital markets innovation and the evolving relationship between regulation and emerging financial technologies,” the statement said.
It said Saqib’s attendance at the event reflected Pakistan’s growing engagement with global discussions shaping the next phase of financial and technological transformation.
“As Pakistan moves toward modernizing its financial infrastructure and strengthening its position in the global digital economy, such high-level engagements signal increasing international recognition of the country’s regulatory direction and leadership,” the statement added.
Last month, Pakistan signed a memorandum of understanding with a company affiliated with World Liberty Financial to explore the use of a dollar-linked stablecoin for cross-border payments.
Pakistan has stepped up efforts recently to regulate its digital asset sector and is exploring digital currency initiatives as part of broader measures to reduce cash usage.
