Abstract:
This study digs into the liquidity premium built into Government of Pakistan (GoP) Ijarah Sukuk compared to Pakistan Investment Bonds (PIBs), using a primary survey to get real insights straight from investors in Pakistan. Instead of leaning on only secondary market data like previous Project, this study asks people—finance pros, business academics, finance students, and retail investors— about their liquidity preferences, investment habits, what they know, and how they feel about the gap between Sukuk and PIBs in Pakistan’s split Islamic and conventional bond markets. A structured questionnaire was made up of 20 questions covering ten themes, and it was shared with 60 people recruited through social media within Pakistan. The survey digs into things like: how well people know Sukuk and PIBs, how liquid they think each one is, personal investment preferences, awareness of the yield gap, understanding of the liquidity premium, the importance of Shariah rules, knowledge of the secondary market, how macroeconomic trends sway choices, differences between big institutions and regular investors, and how the market/regulations are viewed. We analyzed responses through simple stats, sorting frequencies, comparisons, and calculating averages using Likert scales. We also ran regression analysis and t-tests to see if different groups think and act differently. To help frame the Pakistani results, we also looked at Project from Malaysia and Indonesia—other markets with similar government Sukuk. This study is new for Pakistan since it’s based on first hand survey evidence rather than just market data, giving practical feedback for policymakers, Islamic bankers, and everyday investors trying to make sense of where Sukuk fits in the bigger picture.
