ISLAMABAD, Oct 30 (APP): In response to the increasing demands of the financial market in general and Islamic financial institutions in particular for introducing new instruments, the Finance Division moved a summary for the Cabinet for amendment in the existing Government of Pakistan Market Treasury Bills 1998 and Government of Pakistan Ijara Sukuk Rules 2008.
In a landmark decision, the Federal Cabinet has granted its approval to the summary presented by the Ministry of Finance, leading to substantial amendments to the subject legal instruments, said a press release issued here.
These amendments aim to enhance efficiency and provide flexibility for issuing, registering, trading and transferring Government Securities through any institution.
The implementation of these rules will not only make participation in Government securities auctions/issuance simpler but will also expand the investor base.
It is also expected that these amendments will help in reducing the cost of borrowing as greater diversification will significantly enhance the subscription in government securities.
These amendments will also enable the Government to launch its securities through other Capital Market Institutions including Pakistan Stock Exchange (PSX), Central Depository Company (CDC) and National Clearing Company Pakistan Limited (NCCPL), which will bring more transparency and accessibility for investors, aligning with global best practices.
The Ministry of Finance, in collaboration with relevant stakeholders, will ensure the effective implementation of these amendments.
The changes are expected to positively impact Pakistan’s financial markets and contribute to the country’s overall economic development.