State Bank of Pakistan Raises PKR 47 Billion through Sukuk to Finance Budget Deficit

The State Bank of Pakistan (SBP) has raised PKR 47.24 billion through the auction of a five-year sovereign Sukuk Ijarah on the 18th of June 2020. This Sukuk issuance comes under the approval received from the Federal Cabinet of Pakistan to raise PKR 700 Billion to finance the budget deficit, particularly to counter the impact of the COVID-19 pandemic.

According to local media reports, the Sukuk attracted bids worth PKR 115.29 billion against an initially set target of PKR 75 billion.

In the competitive auction the SBP picked up Rs.46.44 billion at a further Rs.797 million from the non-competitive bid at a cut-off of 10 basis points under the benchmark applicable on all accepted bids....