The government has planned to raise Rs 300 billion during the second quarter (March to May) of 2024 through a series of the Government of Pakistan Ijarah Sukuk (GIS) auctions at the Pakistan Stock Exchange (PSX).
In a notice issued by the PSX on Tuesday, details of the auctions were disclosed which are a part of the government’s ongoing efforts to finance its obligations and will be carried out from March to May 2024.
The notice specifies that these auctions will offer various tenors of Sukuk, including short-term (12 months), fixed-rate, and floating-rate instruments.
For the GIS short-term (12 months), auctions will be held on four separate dates, starting from March 14 to May 23, with each targeting an auction size of Rs 10 billion. The settlement dates will follow closely, ranging from March 15 to May 24, 2024.
The government’s target is to raise Rs 60 billion from a GIS short-term auction.
In the GIS fixed rate category, both fresh issues and re-openings will be auctioned off. The tenor-wise targets are set for three and five years, each with a total target auction size of Rs 20 billion. These auctions are also scheduled to take place from March 14 to May 23, with settlement occurring the following day after each auction.
Cumulatively, Rs 120 billion will be raised through GIS fixed-rate auctions.
The GIS floating rate Sukuk will see auctions for both fresh issues and re-openings with a tenor target of three and five years and a total auction size of Rs 20 billion for each. A total amount of Rs 120 billion will also be raised through this auction.
Similar to the other categories, the auction and settlement dates are from March 14 to May 23, 2024.
This move by the PSX is aimed at providing ample opportunity for market participants to invest in government securities, while also helping the government manage its liquidity needs.
Market analysts anticipate strong participation from institutional and retail investors, reflecting confidence in the government’s debt instruments.
