Regulatory Alerts2026-06-22 | DMMD Circular Letter No. 08Outright Purchase and Sale of GOP Sukuk by Government of Pakistan (GOP)
The State Bank of Pakistan's Domestic Market & Monetary Management Department issued Circular Letter No. 8 of 2026 to expand eligibility for Government of Pakistan Sukuk auctions to include non-bank investors. This directive permits corporates, funds, and individuals to participate via pass-through or non-competitive bids submitted through Islamic Banking Institutions. The circular establishes specific procedural requirements, including the use of authorized bid forms and the acceptance of non-competitive bids at the uniform price determined by competitive auctions.
Circulars/Notifications - Domestic Market & Monetary Management Department
DMMD Circular Letter No. 8 of 2026
Jun 22, 2026
The Presidents/Chief Executive Officers, All Islamic Banking Institutions (IBIs), Islamic Banking Branches (IBBs)
Dear All,
Outright Purchase and Sale of GOP Sukuk by Government of Pakistan (GOP)
Please refer to DMMD Circular No. 18 of 2015 regarding outright purchase of GOP Sukuk on deferred payment basis (Bai-Muajjal) by the Government of Pakistan and sale of these GOP Sukuk on ready payment basis through uniform price based competitive bidding auction process.
It has been decided to include non-bank investors (including but not limited to corporates, funds, individuals) as eligible participants in these auctions.
In this regard, following terms will be applicable:
Non-bank investors will be allowed to participate in these auctions, by submitting pass-through bids or non-competitive bids, through any Islamic Banking Institution (IBI) or Islamic Banking Branch (IBB).
IBIs / IBBs will submit the documents on behalf of the non-bank investors submitting pass-through or non-competitive bids.
In case of non-competitive bids in Bai-Muajjal auctions:
IBIs/IBBs will submit non-competitive bids with the name/account title of investor and amount of Sukuk to be sold/purchased, without quoting the price as per the format attached as Annex-A .
Non-bank investors will submit an undertaking and authorization form to the IBIs/IBBs before the auction as per format attached as Annex-B .
Only a single bid will be allowed to be submitted in each tenor.
Non-competitive bids shall be submitted one day prior to the competitive auction or as per the auction schedule announced from time to time.
Non-competitive bids will be accepted at the uniform price decided through the competitive auction.
All other instructions shall remain unchanged.
Enclosed :
Annexure-A : Non-Competitive Bid Form for IBIs/IBBs
Annexure-B : Investor Undertaking & Authorization Form
Yours truly,
Sd/-
(Rizwana Rifat) Additional Director
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