The Securities and Exchange Commission of Pakistan (SECP) has taken a significant step to promote Pakistan’s capital market by permitting Asset Management Companies (AMCs) to invest in Government of Pakistan Ijarah Sukuk (GIS) listed and traded on the Pakistan Stock Exchange (PSX).
The SECP issued Circular No. 36 of 2025, which impacts AMCs, the Mutual Funds Association of Pakistan, and Trustees of Collective Investment Schemes (CIS). The circular supersedes earlier directives on the categorisation of open-end CIS, aiming to increase participation of mutual funds in one-year GIS investments.
The SECP has allowed AMCs to invest in GIS with a maturity of more than six months but not exceeding one year. This move is part of the SECP’s broader efforts to enhance capital market activity, offering a more inclusive investment opportunity.
Key conditions outlined include a requirement for the weighted average time to maturity of the net assets to remain under 90 days, and a monthly fund manager report disclosing the exposure to GIS investments as a percentage of net assets. All other applicable conditions for money market schemes remain in place.
This initiative comes after the government raised Rs2.25 trillion through Sukuk auctions since December 2023, further solidifying the role of GIS in the national financial market.
