Please refer to DMMD Circular No. 24 of 2021 and DMMD Circular No. 25 of 2021, whereby SBP had introduced its Mudarabah based Shariah Compliant Standing Ceiling Facility and Open Market Operations (OMO –Injections), respectively, for eligible Islamic Banking Institutions (IBIs).

Pursuant to availability of benchmark/revaluation rates of GoP Ijara Sukuk (GIS) issued through Pakistan Stock Exchange (PSX), the custody of which resides with Central Depository Company (CDC) (hereinafter referred to GIS(CDC)); SBP hereby notifies the mechanism for eligible IBIs for availing Mudarabah Based Financing Facilities against GIS(CDC) as collateral:

1. For availing Shariah Compliant Mudarabah Based Standing Ceiling Facility and Open Market Operations (OMO –Injections) using GIS(CDC) as collateral, the IBIs shall pledge the collateral in favor of SBP in Central Depository System (CDS) of CDC, using Group IDs as described in point 2 below.
   
   
2. SBP will create the Group ID on CDS for pledging of GIS (CDC). The syntax for Group IDs will be as below;
   
   

   Liquidity Facility	Group ID	Group ID Description
   Ceiling Facility	2025-30	SBP MFF Ceiling
   OMO Injection	2025-29	SBP MFF OMO

   
   
3. The market value of collateral provided by IBI to avail MFF must be at least equivalent to the sum of financing amount availed from SBP, the expected profit on MFF, and the applicable haircut on market value of the security offered as collateral in line with the collateral requirements notified by SBP from time to time.
   
   
4. Market value of GIS(CDC) used as collateral will be determined using their respective revaluation rates published by FMAP, as on the last working day before the day on which the facilities are requested.
   
   
5. Collateral pledged in favor of SBP for availing the said facilities will cease to be un-encumbered and will not be counted towards SLR of the IBIs, during the period of facility.
   
   
6. After receipt of deal confirmation from the IBI, and confirmation of the pledge of collateral in CDS in favor of SBP, the funds will be transferred to IBI’s current account at SBP.
   
   
7. On settlement/maturity date of each financing transaction under MFF, SBP will debit the current account of the IBI maintained with SBP to recover the amount of financing and the profit (as per the expected profit rate), and release the pledged securities in CDS.
   
   
8. Provisions of the DMMD Circular No. 9 of 2024 are applicable for availing Mudarabah Based Financing Facilities from SBP against GIS(CDC) as collateral.

All IBIs availing MFF against eligible collateral are advised to henceforth submit the deal confirmation letter as per revised format [Annexure A], (via Data Acquisition Portal -DAP), duly signed by the authorized signatories, to Chief Manager, SBP (BSC) Karachi Office. All other instructions on the subject will remain unchanged.  

Enclosed:

1. Annexure A – Revised Mudarabah Deal Confirmation Letter