The government through the Ministry of Finance has launched the auction of the first-ever 1-year tenure sovereign domestic Ijarah Sukuk with the expected return in the range of 16-17 percent per annum.
This is the first time that Pakistan is offering a 1-year sovereign Ijarah Sukuk in the domestic market with 6-month rental payment.
The Sukuk is being offered to all banks, mutual funds, pension funds, the corporate sector, and individual investors looking for Shariah-compliant attractive returns. The Sukuk can also attract high Net worth local and international Shariah-minded investors and those looking to shift from interest-based National Saving schemes offered by CDNS.
The launch of short-term Sukuk will be another step towards the conversion of Government financing to Islamic modes and to provide the financial sector and investors an alternative avenue to invest in Shariah-Compliant Sukuk of shorter tenure.
The initial target set by the Ministry of Finance is Rs. 30 billion and the auction is expected to gain interest in the financial market looking for Shariah-compliant avenues. It can also provide the government an option to discontinue 12 months of T-bills after the Federal Shariat Court decision for the elimination of Riba from the financial sector and the Finance Minister and SBP Governor’s announcement to shift to the Islamic banking system in the next 5 years.
Previously after 2018, the Ministry of Finance issued over 2400 billion worth of Ijarah Sukuk for 5 years tenure, and last month the Ministry also conducted the auction for the 3-year Ijarah Sukuk.
Meezan Bank, along with Dubai Islamic Bank & Alfalah Islamic is acting as Joint Financial Advisor for the Sukuk transaction to the Ministry of Finance and the Shariah Advisory Committee of SBP also approves the Sukuk to ensure its adherence to Islamic law.
Wah Kiya Baat hy
How individually can purchase
Hy