The State Bank of Pakistan (SBP) on Monday said the maximum holding limit for Islamic banks in the government of Pakistan Ijara Sukuk will be 35 percent of the cumulative target or issued amount, whichever is higher, to ensure that there is no over-concentration, a circular said.
Under the revised instructions, the holding limit for conventional banks with the Islamic banking branches will be 35 percent of the cumulative target or issued amount, whichever is higher.
“For conventional banks with no Islamic banking branches, the holding limit will be 25 percent of the cumulative target or issued amount, whichever is higher,” the SBP said. “Adherence to the above holding limit by issue has to be complied as of close of any business day.”
The holding restriction will be applied on a combined / amalgamated basis for commercial banks with Islamic banking branches. The government has set a sukuk borrowing target of Rs450 billion for the current fiscal year.