KARACHI: The State Bank of Pakistan (SBP) on Monday has approved the Sukuks (1st issue) of Karachi Shipyard and Engineering Works Limited (KSEW) as approved security for Islamic Banks (IBs)/Islamic Banking Branches.

The SBP said, “In terms of government of Pakistan notification No. 5 (I) GS/2005-149 dated 22nd January, 2008, Karachi Shipyard & Engineering Works Limited (KSEW) Sukuks (1st issue) has been notified as an Approved Security for Islamic Banks (IBs)/Islamic Banking Branches (IBBs), for the purpose of Statutory Liquidity Requirement (SLR) under sub-section (1) of section 29 and sub-section (2) of section 13 of the Banking Companies Ordinance, 1962.”

The Bank further said the overall Sukuk holdings for SLR shall not exceed 5 percent of the Time and Demand Liabilities of the IBs/IBBs, as the case may be.