Staff State Bank of Pakistan (SBP) is set to issue GoP Ijarah Sukuk (GIS) of Rs. 150 billion against the asset of Islamabad Sports Complex.

According to the SBP, various issues of Sukuks will be auctioned from November to January for a period of 1,3, and 5 years on the basis of fixed and variable rental rates.

Islamabad Sports Complex has been identified as an underlying asset of the Pakistan Sports Board together with identified, unencumbered, and undisputed land of PSB surrounding the Complex. These lands would be identifiable by survey numbers and area and would be identified as the proposed Asset to facilitate the issuance of GoP Ijarah Sukuk.

Analysts said the government has continued to raise funds through Sukuks against various assets to meet its requirements in line with the directives of the Federal Sharia Court, which ordered the government to transform the economy from interest-based to Sharia-based. Also, Sukuks have become the preferred choice for raising funds because the government saves billions of rupees as compared to T-Bills and Pakistan Investment Bonds.

Meanwhile, the banking regulatory notified a few amendments regarding the eligibility of investors having an interest in Sukuk’s investment. It allowed individual investors to explore investment opportunities in Sukuks. Primary Dealers comprising major banks and financial institutions will continue to make investments on behalf of their investors.

All investors, except banks (scheduled, specialized, and microfinance), DFIs, and Investment Banks, shall be eligible to submit NCBs in the GIS auction, the circular issued by the SBP stated. Banks (scheduled, specialized, and microfinance), DFIs, and Investment Banks shall not be eligible to submit non-competitive bidding in the Sukuk auction.

Source: Pro Pakistani