KARACHI: In a significant milestone for Pakistan’s financial markets, the primary market auction of Government Debt Securities (GDS) will now take place at the Pakistan Stock Exchange (PSX).
For the first time, one year GoP Ijarah Sukuk will be launched from the Stock Exchange platform in the first phase. In this context, PSX has notified, in coordination with Debt Management Office of the Ministry of Finance, a quarterly auction calendar whereby the first primary market auction will be held via the Capital Market Infrastructure Institutions (CMIIs) on December 8, 2023.
In a momentous development for Pakistan’s financial landscape, a gong ceremony at the Pakistan Stock Exchange (PSX) marked the initiation of primary market auctions for Government Debt Securities (GDS). The event was graced by the presence of Caretaker Prime Minister Anwaar-ul-Haq Kakar, who served as the Chief Guest.
Among the distinguished attendees were Dr. Shamshad Akhtar, Caretaker Federal Minister for Finance, Revenue, and Economic Affairs; Akif Saeed, Chairman of the Securities and Exchange Commission of Pakistan (SECP); along with other leaders from the capital market ecosystem and business.
Addressing the ceremony, Prime Minister Kakar emphasized the collective responsibility of stock brokers, the SECP, and other participants in promoting upcoming primary market auctions to a diverse group of investors.
He lauded the auction of Government Ijarah Sukuks through PSX, highlighting its role in simplifying participation, diversifying investor bases, and enhancing transparency.
Caretaker Federal Minister Dr. Shamshad Akhtar hailed the occasion as a momentous one for the financial markets and the Pakistani economy.
Caretaker Federal Minister Dr. Shamshad Akhtar acknowledged the collaborative efforts of the government machinery, particularly the Debt Management Office at the Ministry of Finance, in facilitating the primary market auction of Government Debt Securities at PSX.
SECP Chairman Akif Saeed underscored the significance of government securities for capital market development and envisioned the launch of GDS at PSX as just the beginning.
He urged various entities, including PSX, brokers, insurance companies, and asset managers, to concentrate efforts on marketing to attract new investors to the capital market.
MD and CEO of PSX, Farrukh H Khan, expressed excitement about the Exchange’s role in hosting primary market auctions for GDS. He highlighted regulatory amendments that enabled PSX, alongside the State Bank, to conduct these auctions.
Khan emphasized that utilizing the PSX platform would generate interest from a broader investor base, enhance transparency, result in competitive pricing, and ultimately lower the government’s cost of debt.
Khan extended gratitude to the Government of Pakistan, particularly Prime Minister Anwaar ul Haq Kakar and Federal Finance Minister Dr. Shamshad Akhtar, for their leadership in this groundbreaking development.
He also acknowledged the support and guidance of SECP, thanking key stakeholders, including NCCPL, CDC, PSX teams, and market participants, for their contributions to this landmark achievement.
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