On Dec. 26, PAK CB issued framework for counterparty eligibility.
PAK CB issued Framework for collateral and counterparty eligibility for PAK CB monetary policy lending operations and mudarabah based financing facilities.
Follows PAK CB Jun. 2022 added development firms in market operations, #139943.
Also follows PAK CB Dec. 2021 shariah compliant liquidity facilities, see #125294.
Framework
Stipulates haircuts that PAK CB will apply on market value of government securities offered as collateral for availing financing under its monetary policy lending operations.
Plus, criteria for the purpose of extending financing under monetary policy lending operations, such as being a regulated entity, and financial soundness requirements.
Some institutions will be ineligible for participation; criteria for such institutions listed.
Effectiveness
Instructions will be applicable from Jul. 2, 2025.