KARACHI: The first-ever auction for a one-year Government of Pakistan Ijarah Sukuk at the Pakistan Stock Exchange on Friday received an extraordinary response as expected.

The auction for this sovereign Islamic paper received total participation of Rs 479 billion as compared to the target of Rs 30 billion.

This extraordinary response was expected, Muhammad Sohail, a leading analyst said.

MTBs and Ijara Sukuk Rules: Cabinet approves summary regarding amendment: MoF

The government will decide the amount to be raised and the cut-off yield soon. It was a landmark development for the financial markets of Pakistan, the Primary Market Auction of Government Debt Securities (GDS) will now also be held at PSX.

This follows the change in rules by the Cabinet to enable government debt to be raised from the capital markets, in addition to the State Bank of Pakistan.

Copyright Business Recorder, 2023