Dollar rate today, USD to PKR – 15 Nov 2022, other currencies The country’s record sale of Ijarah Sukuk generated Rs371 billion, which is more than $1.29 billion, making it the largest issuance of Islamic bonds in a single auction since the Sukuk program’s inception in 2008. The record yield tapped into strong demand from Islamic banks in the region. According to bankers, the government raised this amount on August 7 through the settlement of Sukuk. On August 3, various banks participated in the auction for investment in the Government of Pakistan Ijarah Sukuk. In the Sukuk, six denominations were available for bidding, including one-, three-, and five-year fixed-rate Sukuk, as well as one-, three-, and five-year variable-rate Sukuk. According to bankers, the government expected to raise Rs240 billion from the auctions, but the Sukuks were oversubscribed by more than 200%, with total bids received equivalent to more than Rs508 billion (approximately $1.77 billion). Sukuk worth Rs371 billion were issued in five denominations based on the announced cutoff rates, while all bids for the five-year fixed rate denomination were rejected. Depending on the tenure of the Sukuk, the rental rate ranged from 18.49% per annum to 23.62% per annum. The rental payment will be made every six months, with the Sukuk being redeemed at maturity. The Islamabad Motorway was used as the underlying asset for Sukuk issuance, and an Ijarah Sale and Lease Back transaction was completed. The Shariah Advisory Committee of the State Bank of Pakistan approved the underlying Shariah Structure of the Sukuk, and the transaction was led by Meezan Bank Limited, with Dubai Islamic Bank Pakistan Limited and Bank Alfalah Limited serving as Joint Financial Advisors. According to Ahmed Ali Siddiqui, the head of Shariah Compliance at Meezan Bank, the government now prioritizes Sukuk over interest-based borrowing, which benefits the economy, saves the government money, encourages financial inclusion, strengthens the Islamic banking sector, and helps the government comply with the Federal Shariat Court’s ruling that interest must be removed from the economy. Demand for local currency sukuk has risen as Islamic banks report healthy asset growth. The SBP aims to increase its share of Islamic banking to 35% by 2025. The Islamic banking industry currently accounts for 20% of the total. When it announced last year that it would implement the Federal Shariat Court’s ruling, the government implied that it would convert the current interest-based banking system to an interest-free model by December 2027.