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Circulars

Government of Pakistan Ijara Sukuk

July 27, 2020
9607

The Presidents/ Chief Executives

All Banks / DFIs

Government of Pakistan Ijara Sukuk

Please refer to DMMD Circular No. 2 of 2011 in which holding limit of GOP Ijara Sukuk has been defined for banks.

In order to rationalize the holding limit rule, it has been decided that issue wise holding Limits for GOP Ijara Sukuk will be linked to cumulative target (as per auction calendar) or issued amount whichever is higher in each tenor. Accordingly, instructions issued vide above referred circular are revised as below:

Current Instructions Revised Instructions
  1. In order to ensure that there is no over concentration, maximum holding limit of GOP Ijara Sukuk for commercial banks will be as under:
    1. For Islamic Banks holding limit will be 35% of the issue amount.
    2. For Conventional Banks, with Islamic Banking Branches, holding limit will be 35% of the issue amount. The holding restriction will be applied on a combined / amalgamated basis for commercial banks with Islamic Banking Branches.
    3. For Conventional Banks, with no Islamic Banking Branches, holding limit will be 25% of issue amount.
    4. Adherence to the above holding limit by issue has to be complied as of close of any business day.”
  1. In order to ensure that there is no over concentration, maximum holding limit of GOP Ijara Sukuk for commercial banks will be as under:
    1. For Islamic Banks, holding limit will be 35% of the cumulative target or issued amount, whichever is higher.
    2. For Conventional Banks with Islamic Banking Branches, holding limit will be 35% of the cumulative target or issued amount, whichever is higher. The holding restriction will be applied on a combined / amalgamated basis for commercial banks with Islamic Banking Branches.
    3. For Conventional Banks with no Islamic Banking Branches, holding limit will be 25% of the cumulative target or issued amount, whichever is higher.
    4. Adherence to the above holding limit by issue has to be complied as of close of any business day.”

The revised instructions will be applicable to all outstanding issues of GOP Ijara Sukuk. All other instructions on the subject will remain unchanged.

Yours sincerely,

Rizwana Rifat
Additional Director