IslamicFinance.de

The government is mulling to purchase near maturing Ijara Sukuk worth Rs233.81 billion from the Islamic banks on one year deferred payment term to squeeze surplus liquidity. It is expected to buy Rs233.81 billion Shariah-compliant paper, maturing on 21 November, as no investment option is available for Islamic banks to park their surplus funds of around Rs80-90 billion. The government will buy Ijara Sukuk having issues of GIS9, GIS10, GIS11, GIS12, and GIS13 using Islamic financial concept of Bai-muajjal via open market operation for one year. The Islamic banking institutions are flush with excess cash in the absence of no fresh Sukuk in the market.