State Bank of Pakistan Revises Holding Limit for Domestic Ijarah Sukuk, Linking to Cumulative Target

In a circular issued earlier this week, the State Bank of Pakistan (SBP) announced the revision of the holding limit attached to the Government of Pakistan’s Ijarah Sukuk, linking the holding limit to the higher of a cumulative target, or the issued amount.

According to a previous circular issued in back in 2011, SBP’s Domestic Market and Monetary Management Department set the maximum holding limit of the Government’s’ Ijarah Sukuk for commercial banks at various rates on the issued amount.

Islamic banks and conventional banks with Islamic banking branches had a holding limit of 35% of the issued amount. For conventional banks with no Islamic banking branches,...