The State Bank of Pakistan (SBP) has expanded access to its Government of Pakistan Ijarah Sukuk (GIS) auctions, allowing non-bank investors to participate directly.
The policy shift removes previous restrictions that limited primary market participation largely to commercial banks and financial institutions, opening the door for corporate treasuries, mutual funds, and other institutional players to bid on sovereign debt instruments.
This structural change is designed to broaden the investor base for Pakistan's sovereign debt, potentially reducing reliance on bank funding and improving the depth of the domestic bond market.
By enabling a wider range of entities to hold GIS, the central bank aims to enhance liquidity and price discovery in the secondary market, which has historically been constrained by a narrow holder base.
The decision comes as Pakistan continues to navigate fiscal consolidation and debt management challenges.
Diversifying the investor profile for government securities is a key component of efforts to stabilize domestic financing costs and reduce refinancing risks.