Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    Good Fortune trailer
    Videos

    First Trailer for Aziz Ansari’s Good Fortune, Starring Keanu Reeves

    May 29, 2025 2 Min Read
    Last of Us Season 2
    Videos

    ‘The Last of Us’ Season 2 Premieres Date What to Expect From HBO’s Hit Series

    April 13, 2025 2 Min Read
    Disney Snow White box office
    Videos

    Snow White Teaser Drops: Gal Gadot and Rachel Zegler Shine

    February 22, 2025 1 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: SECP Introduces Sukuk Ijarah to Boost Islamic Finance in Pakistan
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
Pakistan Sukuk Ijarah bonds
PhotoNews Pakistan > Business > SECP Introduces Sukuk Ijarah to Boost Islamic Finance in Pakistan
Business

SECP Introduces Sukuk Ijarah to Boost Islamic Finance in Pakistan

Web Desk
By Web Desk Published August 24, 2024 3 Min Read
Share
Pakistan Sukuk Ijarah bonds
SHARE

The Securities and Exchange Commission of Pakistan (SECP) has unveiled a strategic plan to bolster Islamic finance by introducing Sukuk Ijarah as a robust alternative to traditional bonds.

The Sukuk Ijarah is part of a broader effort to cultivate a market for short-term Sukuk to expand Pakistan’s Shariah-compliant financial offerings. Sukuk issuance is poised to attract a broader spectrum of investors seeking adherence to Islamic financial principles.

Imran Inayat Butt, Executive Director at SECP, shared with WealthPK that SECP has recently released two discussion papers designed to engage the public and outline regulatory enhancements for the listing of both sovereign and corporate short-term Sukuk. He noted the Pakistani capital market’s success in providing Shariah-compliant borrowing options for the government and corporate entities. A vibrant short-term Sukuk market could provide diverse Shariah-compliant financial solutions, aligning with the needs of issuers and investors alike. Butt remarked on the trend of corporations opting for private placements of Sukuk, which constrains their reach to a wider investor base.

Pakistan International Bond & Sukuk Yields pic.twitter.com/Q2FZGPbaF9

— Topline Securities (@toplinesec) August 24, 2024

Butt also detailed SECP’s proposal to make short-term corporate Sukuk more appealing by streamlining processes, minimizing procedural hurdles, and reducing costs. The discussion paper also points out that globally, most short-term sovereign Sukuk is based on non-tradable structures like Murabaha, Salam, and Istisna, underscoring the necessity for innovative structures to facilitate tradable short-term sovereign Sukuk. Since December 2023, the government has actively mobilized funds by issuing sovereign Ijarah Sukuk, raising approximately Rs. 713 billion through 11 auctions, with maturities ranging from one to five years via the Pakistan Stock Exchange.

In the initial phases, the government could issue non-tradable short-term Sukuk through the Central Depository Company and the National Clearing Company of Pakistan Limited, leveraging existing infrastructure for government Sukuk auctions. These instruments would be marked as non-tradable and only redeemable at maturity.

Pakistan International Bonds and SUKUKs@GovtofPakistan @Financegovpk#Pakistan #Economy #AHL pic.twitter.com/hmMlaRaUNb

— Arif Habib Limited (@ArifHabibLtd) August 23, 2024

Khalida Habib, Head of SECP’s Specialized Companies Division, discussed a concept paper that proposes simplifying the issuance and listing process for short-term corporate Sukuk to enhance cost-effectiveness and efficiency amid rising interest rates. She highlighted the significant demand for short-term Sukuk, noting that the prevalent practice of privately placing and not listing these structures curtails their market potential. By streamlining issuance procedures and introducing cost-saving measures, SECP aims to improve market liquidity and accessibility significantly.

Habib stressed the importance of structural innovation, particularly in making short-term sovereign Sukuk tradable. Such tradable instruments would broaden the investor base and invigorate the secondary market, fostering greater financial stability.

TAGGED:Featured
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

Carlos Alcaraz French Open 2025

Carlos Alcaraz Reaches French Open Final 2025 After Musetti Retires

burj khalifa

Dubai’s Next Mega-Project Could Surpass Burj Khalifa

Oscar Pistorius

Oscar Pistorius Returns to Competition 12 Years After Reeva Steenkamp’s Murder

Garena Free Fire Max codes

Garena Free Fire Max Redeem Codes: Are They Worth the Hype in 2025?

Sydney Sweeney at Echo Valley Premiere

Sydney Sweeney Stuns at Echo Valley Premiere, Navigates Post-Breakup Journey

Post Archives

More Popular from Photonews

19th century Condom Exhibit
Offbeat

19th-Century Condom with Nun and Clergymen Displayed at Dutch Museum

2 Min Read
Spain vs Portugal Nations League 2025 match
Sports

Spain Beats France in Thrilling Nations League Semi-Final, Advances to Face Portugal

3 Min Read
MrBeast on Threads
Offbeat

MrBeast’s Wedding Mystery: Why Borrow from Mom When He’s Worth Billions?

3 Min Read
Sports

Salman Ali Agha Debunks Rumors of Rift with Babar Azam

On June 1, 2025, Pakistan T20 captain Salman Ali Agha dismissed social media rumours of a…

June 2, 2025
Sports

Imane Khelif’s Leaked Medical Report Alleged Male Karyotype

A leaked medical report allegedly identifying Algerian Olympic gold medalist Imane Khelif as biologically male reignited…

June 2, 2025
World

Sharmishta Panoli Granted Interim Bail by Calcutta High Court in Operation Sindoor Case

The Calcutta High Court granted interim bail to Sharmishta Panoli, a 22-year-old social media influencer and…

June 5, 2025
Top NewsWorld

Trump and Musk Clash Over Tax Bill, Sparking Public Feud in 2025

On June 5, 2025, tensions between U.S. President Donald Trump and billionaire Elon Musk burst into…

June 6, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?