Karachi, July 13, 2024 – The Pakistan Stock Exchange (PSX) has proudly announced the induction of Meezan Bank as the first market maker for CDS-eligible Government of Pakistan (GoP) Ijarah Sukuk (GIS). This move, aimed at enhancing liquidity in the CDS-eligible government debt securities (GDS) market, involves the quotation of two-way prices and facilitating the secondary market depth of GoP Ijarah Sukuk.
Since the initiation of GIS auctions through the PSX platform on December 8, 2023, and the subsequent secondary market trading of GIS, there has been a steady increase in retail investor participation. The induction of Meezan Bank as a market maker marks a significant milestone in the PSX’s journey towards becoming a world-class exchange.
Meezan Bank, already a market maker for four listed Shariah-compliant debt securities, has played a key role in the PSX’s efforts to issue GIS. The bank’s expertise in Sharia principles and Islamic finance, along with its commitment to promoting Islamic principles in financial services, has been instrumental in paving the way for the primary market issuance of GIS through the PSX.
Farrukh H Khan, MD and CEO of the PSX, commented on this development, stating, “The inclusion of Meezan Bank as the first market maker for GoP Ijarah Sukuk trading in the secondary market is a positive development for the PSX. This will serve as a stepping stone for the induction of more market makers for GIS at the PSX.”
Deputy CEO of Meezan Bank, Syed Amir Ali, also expressed his enthusiasm for this achievement, saying, “The development of the local Sharia-compliant debt market is a vital step towards achieving the goal of converting conventional banks into Islamic banks. It is an honour for Meezan Bank to achieve this milestone, which marks a significant step for the enhancement of growth in Pakistan’s Islamic capital markets.”
With this successful induction, it is anticipated that other financial institutions will follow in Meezan Bank’s footsteps by becoming market makers, further elevating Pakistan’s Islamic capital market to new heights.
