To control inflation, a person might earn a massive profit of more than 20% on his savings by investing for one to three years in a Sharia-compliant instrument called Sukuk.
It indicates that if you have Rs. 100,000 in savings, you may make almost Rs. 20,000 from it. The returns on the 1-year Sukuk issued by the Government of Pakistan exceed those of the Central Directorate of National Savings.
The Ministry of Finance has released GoP Ijarah Sukuk for a 1-year term with a variable and fixed rental regime, which gives investors a high return rate of around 20-21.5 percent.
The majority of people do not engage in various saving products and instruments with interest rates, but short-term Sukuk is a good option for individuals, corporations, and enterprises for mid-term and short-term (1 year) investment in order to obtain attractive Shariah Compliant profits (hold till maturity view).
How to Invest in 1-Year Sukuk
- Create an IPS account with an Islamic bank that provides IPS (Investor Portfolio Securities).
- Ask that the branch submit your offer (investment amount and estimated rental) for the applicable Ijarah Sukuk (fixed rental or variable rental).
- Individual investors are encouraged to bid on the lower side after consulting with the proper bank branch or treasury in order to get their sukuk bid accepted.
- If your bid is successful, the amount will be withdrawn from your Islamic bank account and the Sukuk transferred to your IPS account.
- You will get rentals from the Government of Pakistan every six months, and at the end of a year, you will receive another six months’ rental and investment amount following Sukuk redemption.
It is also recommended that you visit a large or big branch of the bank because most bank staff are unaware of IPS accounts at outlying branches. If the bank officials are unable to inform you about this feature, the investor should be urged to meet with the branch manager.
Forms and a few documents must be submitted by the investors. The bank charges a fee that is estimated as a proportion of the customers’ profits.
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