July 12th, 2024
Pakistan Stock Exchange (PSX) is pleased to announce the induction of Meezan Bank as the first market maker for CDS-eligible Government of Pakistan (GoP) Ijarah Sukuk (GIS) issued through primary market auction at PSX. This addition aims to enhance liquidity in the CDS-eligible Government Debt Securities (GDS) market through the quotation of two-way prices and to facilitate secondary market depth of GoP Ijarah Sukuk (GIS).
Since the commencement of GIS auctions through the PSX platform on December 8, 2023, and the subsequent secondary market trading of GIS, there has been a gradual increase in retail investor participation. Meezan Bank’s induction as a market maker for GIS marks another milestone in PSX’s journey towards becoming a world-class exchange.
Meezan Bank is already a market maker for four listed Shariah-compliant debt securities and has been a key player in PSX’s effort to issue GIS. The Bank’s expertise in Shariah principles and Islamic Finance, as well as its commitment to promoting the widespread use of Islamic principles in the financial services industry, has been instrumental in paving the way for the primary market issuance of GIS through PSX.
On the induction of the GIS market maker, Mr. Farrukh H. Khan, MD & CEO, PSX stated, “The inclusion of Meezan Bank as the first market maker for GoP Ijarah Sukuk trading in the secondary market is a positive development for PSX. This will serve as a stepping stone for the induction of more market makers for GIS at PSX. It is a testament to PSX’s dedication to improving market efficiency, and we look forward to the positive impact this development will have on trading activity. We are confident that it will contribute to the sustained growth of the GIS secondary market.”
Commenting on this significant milestone, Syed Amir Ali, Deputy CEO, Meezan Bank, added, “The development of the local Shariah-compliant debt market is a vital step towards achieving the goal of converting conventional banks into Islamic banks. It is an honor for Meezan Bank to achieve this milestone, which marks a significant step for enhancement of growth in Pakistan’s Islamic capital markets.” He further added that the Bank always aims to foster the expansion of Islamic finance and strives to provide its customers with innovative and high-quality solutions. He also appreciated the PSX team for their commendable efforts in developing Pakistan’s Islamic capital markets.
With the close of this successful induction, it is anticipated that other financial institutions will follow in the footsteps of Meezan Bank by becoming market makers, which will elevate Pakistan’s Islamic capital market to the next level.