KARACHI: The State Bank of Pakistan (SBP) has linked the holding limit for the Government of Pakistan (GOP) Ijara Sukuks to cumulative target, as opposed to issued amount, according to a a circular issued on Monday.
According to a circular issued in 2011 by the SBP’s Domestic Market and Monetary Management Department, the maximum holding limit of GOP Ijara Sukuk for commercial banks was set at various limits of the issued amount.
For Islamic banks, the holding limit was 35 per cent of the issue amount. For conventional banks, with Islamic banking branches, the holding limit was also 35 per cent of the issue amount. For conventional banks, with no Islamic banking branches, the holding limit was 25 per cent of the issue amount.
Now, according to a new circular issued by the SBP’s Domestic Market and Monetary Management Department on Monday, the same percentage holding limits will stand, except it will be linked to the cumulative target, or issued amount, whichever is higher.
The revised instructions are applicable to all outstanding issues of GOP Ijara Sukuk.