Karachi: The Pakistan Stock Exchange (PSX) reported a highly successful government securities auction on October 18, 2024, involving multiple tenors of Ijarah Sukuk, which collectively fetched about PKR 898.64 billion. This figure reflects a robust appetite among investors for government-backed securities.

The auction featured three categories of securities: GIS-FRD, GIS-FRR, and GIS-VRR, with varying maturities and rental rates. The 1-Year Discounted Ijarah Sukuk under the GIS-FRD category saw competitive bids totaling PKR 59.28 billion from the PKR 225.59 billion that were realized, showing a cut-off rental yield of 11.7498% at a price of PKR 89.5114.

In the GIS-FRR category, the government floated 3-Year, 5-Year, and 10-Year tenors. The total realized amount for these was PKR 143.49 billion, with competitive bids leading to a realization of PKR 33.98 billion, maintaining a yield range from 12.3000% to 12.7400%.

The GIS-VRR series, representing variable rate rentals, brought in PKR 554.89 billion in realized bids. Competitive offerings amounted to PKR 137.75 billion, with the cut-off margins ranging broadly from -5.00 basis points to -56.00 basis points, indicating a variable interest environment.

According to information available from the Pakistan Stock Exchange (PSX), the auctions were conducted in a smooth and orderly fashion, reflecting continued confidence in Pakistan's fiscal instruments.

This auction underscores the Government of Pakistan's ongoing efforts to fund its fiscal needs through market-based instruments, providing a reliable investment avenue for both institutional and individual investors.