The Presidents/ CEOs,

All Islamic Banking Institutions (IBIs).

Dear Sir,

Islamic Export Refinance Scheme (IERS)

Eligibility of Government of Pakistan (GoP) Ijara Sukuk in Musharaka Pool

Please refer to SBP’s Islamic Export Refinance Scheme and other instructions issued from time to time.

2. From now on, un-encumbered GoP Ijara Sukuk may be included in the Musharaka Pool (MP), created under IERS, subject to the following conditions:
   1. The maximum limit for Islamic Bank Institutions’ investment in GoP Ijara Sukuk eligible for IERS MP shall be 50% of their total share of financing in the MP.
   2. GoP Ijara Sukuk included in MP shall not be counted for meeting bank’s SLR requirements.
   3. Where GoP Ijara Sukuk are included in the MP, these will continue to be counted towards calculating the concentration limit on holding of GoP Ijara Sukuk as per DMMD Circular No. 2 of April 22, 2011 and other instructions issued from time to time.
   4. Sukuk included in the MP shall appropriately be reported in the attached Revised Appendix I.
3. All IBIs shall report Sukuk in MP under the sector heading of ‘GoP Ijara Sukuk’ while reporting Revised Appendix 1 and the same should be verified/certified as over and above the SLR eligible limit by the IBI’s Internal Audit Head/Compliance Head. Further, the IBIs shall maintain record of Sukuk issue included and the amount of that issue included in the MP.
4. Other instructions on the subject remain unchanged.