AIRLINK 60.84 Increased By ▲ 1.14 (1.91%)
BOP 6.32 Increased By ▲ 0.06 (0.96%)
CNERGY 4.32 Increased By ▲ 0.05 (1.17%)
DFML 15.91 Increased By ▲ 0.21 (1.34%)
DGKC 69.12 Decreased By ▼ -0.08 (-0.12%)
FCCL 18.11 Decreased By ▼ -0.24 (-1.31%)
FFBL 26.37 Decreased By ▼ -0.38 (-1.42%)
FFL 9.18 Decreased By ▼ -0.10 (-1.08%)
GGL 10.21 Decreased By ▼ -0.09 (-0.87%)
HBL 117.06 Increased By ▲ 1.16 (1%)
HUBC 114.31 Decreased By ▼ -0.09 (-0.08%)
HUMNL 6.87 Increased By ▲ 0.07 (1.03%)
KEL 4.87 Decreased By ▼ -0.02 (-0.41%)
KOSM 5.36 Increased By ▲ 0.71 (15.27%)
MLCF 38.50 Increased By ▲ 0.11 (0.29%)
OGDC 123.33 Decreased By ▼ -1.97 (-1.57%)
PAEL 21.78 Increased By ▲ 0.22 (1.02%)
PIAA 11.80 Increased By ▲ 0.93 (8.56%)
PIBTL 6.08 Increased By ▲ 0.06 (1%)
PPL 113.07 Decreased By ▼ -1.03 (-0.9%)
PRL 28.22 Increased By ▲ 0.32 (1.15%)
PTC 11.39 Increased By ▲ 0.49 (4.5%)
SEARL 51.91 Increased By ▲ 0.21 (0.41%)
SNGP 67.35 Decreased By ▼ -0.91 (-1.33%)
SSGC 11.29 Decreased By ▼ -0.13 (-1.14%)
TELE 7.78 Decreased By ▼ -0.02 (-0.26%)
TPLP 11.54 Decreased By ▼ -0.06 (-0.52%)
TRG 71.72 Decreased By ▼ -1.15 (-1.58%)
UNITY 23.04 Decreased By ▼ -0.51 (-2.17%)
WTL 1.29 Decreased By ▼ -0.01 (-0.77%)
BR100 6,717 Increased By 68.3 (1.03%)
BR30 22,517 Decreased By -52.7 (-0.23%)
KSE100 65,326 Increased By 747.2 (1.16%)
KSE30 22,146 Increased By 256.6 (1.17%)

ISLAMABAD: The Finance Ministry has proposed draft amendments to Pakistan Market Treasury Bills and Ijara Sukuk Rules to promote Islamic mode of borrowing (financing) in the country by pledging assets.

The Finance Ministry has uploaded two separate notifications on its website, one with regard to draft amendment in the Government of Pakistan Market Treasury Bills Rules, 1998, and the other of draft amendments in the Government of Pakistan Ijara Sukuk Rules, 2008.

When contacted, an official said that these draft amendments are aimed at removing hurdles and facilitating Islamic mode of borrowing.

Record Rs371bn raised through sale of Ijarah Sukuk

The official added that there is an intention to increase the Islamic mode of borrowing from two to 10 percent as the difference between Islamic mode of financing, which is acquired by pledging of assets in contrast to conventional borrowing.

The draft amendments have been placed on the website for 15 days to solicit, if any, suggestions, from stakeholders before submission to the federal cabinet for approval.

According to the notification, the draft amendment in the government of Pakistan Market Treasury Bills Rules, 1998, which the federal government proposes to make in the exercise of its power conferred the Public Debt Act, 1944. In the aforesaid rules, for rule 5, “the Treasury Bills shall have such period of maturity not exceeding twelve months as the Finance Division may from time to time determine” shall be substituted.

The draft amendments in Ijara Sukuk Rules, 2008, which the federal government proposes to make in exercise of its power conferred by the Public Debt Act, 1944, as required by subsection (1) of section 28 of the aforesaid Act.

In the aforesaid Rules, for rule 2, it shall be substituted that “the Finance Division shall determine the range of maturity periods of the Sukuk issued by the Pakistan Domestic Sukuk Company Limited in accordance with the government financing needs”.

For the aforesaid Rules rule 4, it shall be substituted, “the profit on the Sukuk shall be paid quarterly, bi-annually or as per the frequency determined by the Finance Division. The profit shall be determined on the basis of the rental rate announced by the State Bank of Pakistan (SBP) prior to the start of each rental period” shall be substituted.

Copyright Business Recorder, 2023

Comments

Comments are closed.

KhanRA Sep 09, 2023 06:51am
“Islamic finance” cannot exist in the modern world, and is essentially just a replacement of the word “interest” with various fees. If a bank loans me $100, I must pay $107 for a very obvious fact: they could have invested that money somewhere else and turned the $100 into $104. And then they must get profit for taking a risk on me. That’s why I pay $7 in interest. Islamic finance from 1400 years ago did not envision the world in which we live. So we are taught to hate internet by being told of only the most egregious loanshark tactics with 100% interest rates. But interest allows you to get credit, and so can be a good thing.
thumb_up Recommended (0)
Abdul Sheikh Sep 09, 2023 12:26pm
Would you please stop printing money.
thumb_up Recommended (0)