State Bank of Pakistan Invited Tenders for Sale of Five-Year Islamic bonds

On the 25th of October 2021, the State Bank of Pakistan (SBP) invited tenders for the sale of five-year Islamic bonds worth PKR 100 billion against three highways in the country.

Why it Matters?

The SBP invited the tenders for sale of Government of Pakistan Ijara Sukuk (GIS) to raise PKR 25 billion on fixed rental rate (FRR) and PKR 75 billion on variable rental rate (VRR). These issuances were noted as one of the Pakistan Government's strategies to raise funds from the Islamic banking sector, in addition to funds generated from the conventional banking sector through Pakistan Investment Bonds (PIBs) and Treasury Bills (TBs), to support the budget.

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