Latest news with #SovereignDomesticGreenSukuk
Business Recorder
16-05-2025
- Business
- Business Recorder
KSE-100 closes 313 points lower as late-session selling erases earlier gains
The Pakistan Stock Exchange (PSX) witnessed mixed trading on Friday, as its benchmark KSE-100 Index swayed in both directions before closing the last session of the week lower by 313 points. The KSE-100 faced range-bound trading in the first half, followed by strong buying in the latter hours, which pushed the index to an intra-day high of 120,506.18. However, selling returned in the final hours to erase the intra-day gains and pushed the index into the negative territory. At close, the benchmark index settled at 119,649.14, down by 312.77 points or 0.26%. 'This lackluster activity can be attributed to lack of trigger and investor`s preference to remain on sideline before the weekend after index gained to close at its ever high level,' brokerage house Topline Securities said in its post-market report. Top positive contribution to the index acme from ENGROH, SYS, BAHL, UBL and BAFL, as they cumulatively contributed 271 points to the index. On the other hand top negative contribution to the index came from FFC, LUCK, MARI, OGDC, PSO and EFERT, as they lost value to weigh down on the index by 476 points to the index. On Thursday, buying rally continued at the PSX with the KSE-100 gaining over 1% to close all-time high of 119,962 level. On week-on-week basis, the KSE-100 gained 11.64% on ceasefire between Pakistan and India with mediation from the US and the approval of loan tranche for Pakistan from the International Monetary Fund (IMF). Pakistan's current account (C/A) posted slight surplus of $12 million in April 2025, against massive surplus of $1.2 billion (revised) last month, data released on Friday by the State Bank of Pakistan (SBP) showed. On year-on-year (YoY) basis, the C/A decreased 96% against a surplus of $315 million (revised) recorded in the same month last year. In a bid to attract investment and promote exports, the federal government on Friday decided to significantly decrease import duties, including a phased elimination of additional customs duty (ACD) and regulatory duty (RD). As per a statement released by the Prime Minister's Office (PMO), PM Shehbaz Sharif has directed the abolition of ACD, which currently ranges from 2% to 7%, and RD, which currently ranges from 5% to 90%, over the next four to five years. Moreover, Pakistan on Friday launched its first Sovereign Domestic Green Sukuk worth Rs30 billion at the PSX, pushing the share of Shariah-compliant financing in the country's total domestic debt to 14%, announced Finance Minister Muhammad Aurangzeb. Pakistan's domestic debt stands at Rs37 trillion, of which Rs5 trillion—approximately 14%—is Sukuk-based debt. Aurangzeb also informed that Pakistan was in the process of 'restructuring and reorganising' its debt profile in line with global standards. 'In this regard, you will be hearing about various innovative funding products for domestic and as well as for international investors', he said. Meanwhile, the Pakistani rupee saw a marginal decline against the US dollar, depreciating 0.02% in the inter-bank market on Friday. At close, the local currency settled at 281.66, a loss of Re0.05 against the greenback. Volume on the all-share index decreased to 572.29 million from 698.96 million recorded in the previous close. The value of shares declined to Rs29.03 billion from Rs39.09 billion in the previous session. At-Tahur Ltd was the volume leader with 44.63 million shares, followed by Cnergyico PK with 32.29 million shares, and Lotte Chemical with 28.64 million shares. Shares of 465 companies were traded on Friday, of which 206 registered an increase, 209 recorded a fall, while 50 remained unchanged.
Business Recorder
16-05-2025
- Business
- Business Recorder
Pakistan 'restructuring and reorganising' its debt, says Aurangzeb
Pakistan is in the process of 'restructuring and reorganising' its debt management process in line with global standards, said Finance Minister Muhammad Aurangzeb on Friday. 'In this regard, you will be hearing about various innovative funding products for domestic and as well as for international investors,' in the coming days, Aurangzeb said while addressing the Pakistan Stock Exchange (PSX) via a video link at the launch of Pakistan's First Sovereign Domestic Green Sukuk worth Rs30 billion. The launch of the Green Sukuk, a type of Islamic bond used to finance environmentally sustainable projects, is part of Pakistan's domestic debt restructuring strategy. It was learnt that the finance ministry and the central bank have kick-started the process to make domestic debt restructuring sustainable. This includes converting short-term loans into longer tenure instruments and reducing large interest payments on the total debt to create fiscal space for development project spending. 'We (Pakistan) want to follow the Malaysian (debt management/restructuring) model… and we can learn a lot from them and move in that direction,' said Aurangzeb, without giving much detail on the Malaysian model. The restructuring of the domestic debt profiling was reflected in the recent buyback of T-bills and their replacement with low-cost and long-term debt instruments like Pakistan Investment Bonds (PIBs). Back in 2024, State Bank of Pakistan (SBP) Governor Jameel Ahmad said that the government's reliance on short-term T-bills had dropped to 21% of the total debt mix, down from 24% and is expected to fall below 20% by the end of FY25. Climate financing: Meanwhile, shifting his talk onto climate financing, Aurangzeb reiterated that climate change 'is an existential threat for Pakistan'. He said the required financing is available, but at the same time, 'we are required to adopt concrete reform measures on climate.' 'One should never be complacent about the financing. Now the ball is in our court to come up with investable and bankable projects.' The South Asian country, which in 2022 suffered catastrophic floods, has stepped up efforts to mobilise climate financing to mitigate the climate change threat. Last week, the IMF Executive Board approved $1.3 billion in climate financing, i.e. Resilience and Sustainability Facility (RSF) for Pakistan. Last year in November, the country received $500 million in climate financing from the Asian Development Bank (ADB). Earlier this year, Islamabad inked a 10-year Country Partnership Framework with the World Bank to address climate challenges. Meanwhile, PSX Chairperson, Dr Shamshad Akhtar, informed that Pakistan intends to issue both Green Sukuks and Green Conventional Bonds. 'Pakistan is required $348 billion in climate adaptation by 2030, which is beyond the capacity of traditional financing alone,' she said. Green Sukuks are seen as a gateway to the $4 trillion Islamic finance and $2.5 trillion green bond markets, she maintained. With the country's energy mix still heavily reliant on fossil fuels, i.e. 60%, experts believe Green Sukuks can support Pakistan's transition to renewables. Economic indicators improve: Advisor to the Finance Minister Khurram Schehzad also addressed attendees, highlighting signs of economic improvement. He stated that Pakistan's debt-to-GDP ratio has declined from 74% to 65%, while the tax-to-GDP ratio has increased to 10.6%, and is expected to reach 11% by the end of FY26. Schehzad shared that Pakistan plans to launch Panda Bonds by the last quarter of 2025 to access the Chinese capital markets.
Business Recorder
16-05-2025
- Business
- Business Recorder
Pakistan issues Rs30bn Green Sukuk to fund renewable projects
Pakistan on Friday launched its first Sovereign Domestic Green Sukuk worth Rs30 billion at the Pakistan Stock Exchange (PSX), pushing the share of Shariah-compliant financing in the country's total domestic debt to 14%, announced Finance Minister Muhammad Aurangzeb. Pakistan's domestic debt stands at Rs37 trillion, of which Rs5 trillion—approximately 14%—is Sukuk-based debt. Addressing the event via video link, Aurangzeb said the Sukuk reflects growing investor confidence in Pakistan's economy and the capital market. Based on an Ijarah structure, the three-year Sukuk will carry a variable rental rate and is being issued under the Sustainable Investment Sukuk framework. Green Sukuk The bidding process was ongoing on Friday morning at the time of filing this report. The Sukuk will be listed and tradable on the PSX. Proceeds will be utilised to fund eligible green energy projects, including the construction of three dams. Meezan Bank is acting as the lead Joint financial advisor, along with Dubai Islamic Bank, Bank Islami, and Alfalah Islamic. The auction is open to local retail, institutional, and corporate investors, as well as to non-resident Pakistanis (NRPs), Roshan Digital Account holders, and foreign investors. The launch coincided with Youm-e-Tashakur (Thanksgiving Day), as the PSX opened after reaching an all-time high of 119,961.91 points a day earlier. 'The best is yet to come for both PSX and Pakistan,' Aurangzeb said, highlighting investor optimism, including among global investors he met recently in London. Green Sukuk auction on 16th The finance minister noted that international investors have shown interest in Pakistan, provided the country maintains macroeconomic stability and continues reforms in energy, taxation, and state-owned enterprises. Aurangzeb added that the government is in consultation with stakeholders to present a promising budget for FY26.
