Islamabad: The Government of Pakistan has successfully raised Rs2.25 trillion through Ijarah Sukuk auctions since December 2023, leveraging the Pakistan Stock Exchange (PSX) platform. This initiative marks a significant shift in the country’s debt management strategy, enhancing market transparency and accessibility.
Traditionally, Government Debt Securities (GDS) were issued and traded in over-the-counter markets. However, in December 2023, the Ministry of Finance (MoF), with federal approval, decided to integrate Capital Market Institutions (CMIs) into the process. This move enabled the issuance, registration, trading, settlement, and transfer of Shariah-compliant GDS through a regulated platform.
The Securities & Exchange Commission of Pakistan (SECP) played a key role in implementing this transition, working closely with the Debt Management Office (DMO), the State Bank of Pakistan (SBP), and other stakeholders, including banks, mutual funds, and brokers.
Trading volumes in the secondary market have gradually increased as market participants adapt to the new system. Several measures, including rationalized brokerage commissions, a standardized revaluation mechanism, same-day settlement, and direct secondary market access for banks and mutual funds, have been introduced to support the initiative.
According to SECP, these reforms are designed to enhance transparency, promote competition, and streamline processes within Pakistan’s domestic debt market. By ensuring confidential bidding, providing an electronic trading platform, and expanding market outreach, the initiative aims to boost investor confidence and improve overall market efficiency.
The SECP reaffirmed its commitment to working alongside the Ministry of Finance to further develop the domestic debt market, ultimately broadening investment opportunities and contributing to the country’s economic growth.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
