The State Bank earlier today took an important decision regarding facilitating Islamic Banking through outright purchase and sale of Islamic bonds.
“The SBP may outright purchase or sale Government of Pakistan Ijara Sukuk (GIS) either on deferred payment basis (Bai-Muajjal) or on ready payment basis through Open Market Operations (OMOs) based on multiple price competitive bidding auction process,” said a State Bank statement.
The central bank said the decision was taken in order to facilitate Islamic banking industry in their liquidity management and more effective transmission of monetary policy..
Each eligible participant will be allowed to submit maximum three bids in an OMO. Minimum bid size will be Rs25 million and its multiple thereof.
The SBP reserves the right to reject all or any of the bids without assigning any reason. If the deferred payment date falls on public/bank scheduled or unscheduled holidays, then the contracts will be extended to the next business day and there will be no change in deferred payment price.
