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SBP revises Limits for GOP Ijara Sukuk

In order to rationalize the holding limit rule, the State Bank of Pakistan has decided that issue wise holding Limits for GOP Ijara Sukuk will be linked to cumulative target (as per auction calendar) or issued amount whichever is higher in each tenor.

In order to ensure that there is no over concentration, maximum holding limit of GOP Ijara Sukuk for commercial banks will be as under:

  • For Islamic Banks, holding limit will be 35% of the cumulative target or issued amount, whichever is higher.
  • For Conventional Banks with Islamic Banking Branches, holding limit will be 35% of the cumulative target or issued amount, whichever is higher. The holding restriction will be applied on a combined / amalgamated basis for commercial banks with Islamic Banking Branches.
  • For Conventional Banks with no Islamic Banking Branches, holding limit will be 25% of the cumulative target or issued amount, whichever is higher.
  • Adherence to the above holding limit by issue has to be complied as of close of any business day.”

The revised instructions will be applicable to all outstanding issues of GOP Ijara Sukuk. All other instructions on the subject will remain unchanged.

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