The first primary market auction of the government of Pakistan one-year Ijarah Sukukat at Pakistan Stock Exchange (PSX) has resulted in a resounding success, the exchange said in a statement received here Tuesday. This is for the first time in Pakistan’s history that an auction of a Government Debt Security (GDS) took place through the state-of- the-art, fully automated and efficient system of the exchange with settlement and custodial services being provided by the other members of the capital market ecosystem, namely the NCCPL and CDC, it said. “It is a remarkable addition to the product suite offered by PSX,” the statement added. The auction which took place on December 8, 2023, via the Exchange, heralds a new beginning for raising the GDS. Against the target of the Rs 30 billion Sukuk, bids accepted amounted to Rs 36.068 billion whereas the total bids received amounted to Rs 481.307 billion. As many as 172 investors participated in the bidding process with 132 being the successful number of bidders, resulting in a diversified investor base for the government. The subscription amount totaled Rs30.191 billion with a cut off rental rate being 19.5199% and a price of Rs 83.7055. Speaking about the auction, the (Caretaker) Federal Minister for Finance, Revenue & Economic Affairs, Dr. Shamshad Akhtar said it was a remarkable achievement which was in the back burner for a long time. “We have now succeeded in implementing the Government Debt Securities issue through the Stock Exchange with the first primary market auction of this GoP Ijarah Sukuk held on December 8, 2023,” she said. She said, this would substantially benefit the government by diversifying the investor base, as well as providing new investment opportunities to investors. The Chairman SECP, Akif Saeed said that government securities were an important tool for the development of the capital market and that the launch of GDS at PSX was just the beginning. He urged PSX, brokers, insurance companies, and asset managers to concentrate their efforts on marketing in order to attract new investors to the capital market. Speaking about the auction MD & CEO PSX, Farrukh H. Khan termed it a landmark achievement, saying the numbers have unveiled the tremendously successful primary market auction which has resulted in generating interest from a large number of investors totaling 172. The government realized a competitive cut off rental rate of 19.5199 percent and the Sukuk was oversubscribed by 16 times.