SBP allows non-bank investors to participate in GIS auctions

The State Bank of Pakistan (SBP) has expanded investor access to Government of Pakistan Ijarah Sukuk (GIS) auctions conducted on a Bai-Muajjal basis, allowing non-bank investors, including corporate, investment funds and individuals, to participate alongside Islamic banks and Islamic banking branches. The move is aimed at broadening the investor base, enhancing market liquidity and supporting the development of Pakistan’s Islamic finance sector. SBP, in 2025, decided that Government of Pakistan (GOP) may outright purchase GIS on deferred payment basis (Bai-Muajjal) and sell these GIS on ready payment basis through uniform price based competitive bidding auction process. However, initially only Islamic banks and Islamic banking branches were eligible to participate in these auctions.