ISLAMABAD: The Finance Ministry has said the caretaker federal cabinet has granted its approval to the summary presented by the Ministry of Finance regarding amendment to the existing Government of Pakistan Market Treasury Bills 1998 and Government of Pakistan Ijara Sukuk Rules 2008.
In a statement issued by the Finance Ministry on Monday, after the meeting of the caretaker federal cabinet, stated that in response to the increasing demands of financial market in general and Islamic financial institutions in particular for introducing new instruments, the Finance Division moved a summary for the Cabinet for amendment in the existing Government of Pakistan Market Treasury Bills 1998 and Government of Pakistan Ijara Sukuk Rules 2008.
In a landmark decision, the Federal Cabinet has granted its approval to the summary presented by the Ministry of Finance, leading to substantial amendments to the subject legal instruments.
Move to promote Islamic mode of financing: MoF proposes draft amendments to MTBs, Ijara Sukuk rules
These amendments are aimed at enhancing the efficiency and provide flexibility for issuance, registration, trading and transfer of Government Securities through any institution.
The Implementation of these rules will not only make the participation in Government securities auctions/issuance simpler but will also expand the investor base. It is also expected that these amendments will help in reducing the cost of borrowing as the greater diversification will significantly enhance the subscription in government securities.
These amendments will also enable the Government to launch its securities through other Capital Market Institutions including Pakistan Stock Exchange (PSX), Central Depository Company (CDC) and National Clearing Company Pakistan Limited (NCCPL), which will bring more transparency and accessibility for investors, aligning with global best practices.
The Ministry of Finance, in collaboration with relevant stakeholders, will ensure the effective implementation of these amendments. The changes are expected to have a positive impact on Pakistan’s financial markets and contribute to the overall economic development of the country.
Copyright Business Recorder, 2023