Govt Raises Rs. 119 Billion At PSX Sukuk Auction

The federal government has raised Rs. 119 billion against an auction target of Rs. 100 billion via issuance of an Ijarah Sukuk bond at the Pakistan Stock Exchange on Thursday. This marked the Ministry of Finance’s 12th auction at the main bourse. The Government Investment Securities (GIS) auction saw significant rate adjustments. The 1-year discounted rate decreased to 15.99 percent, down by 123 basis points. The 3-year fixed-rate return (FRR) fell 63 bps to 15.0017 percent, while the 5-year FRR declined by 61 bps to 14.38 percent. The 3-year variable-rate return (VRR) dropped to 18.5925 percent, 1.35 percent lower than the reference rate of 19.9427 percent. Meanwhile, the 5-year VRR decreased to 18.8326 percent, 1.11 percent below the reference rate of 19.9427 percent. The auction attracted total bids amounting to Rs. 451 billion.