The government mobilised Rs. 118.05 billion through the latest auction of Ijarah Sukuk, as investor interest in Islamic instruments remained robust.

Data released by the Pakistan Stock Exchange showed total bids reached Rs. 445.49 billion, highlighting strong liquidity in the Islamic banking sector and continued trust in sovereign Sukuk.

Meezan Bank served as the lead joint financial adviser for the issue, assisting in structuring and execution.

Despite the high participation, authorities accepted only a portion of the bids, keeping rates aligned with their broader borrowing strategy.

Among the accepted papers, the one-year Sukuk cleared at 11.4999%, while the five-year fixed rental instrument was priced at 11.75%. The 10-year variable rental Sukuk also attracted interest, reflecting a gradual shift towards floating-rate options.

Investors are still sitting on strong Islamic liquidity but are becoming more selective in their placements as expectations around interest rates evolve.

Sukuk instruments continue to play a key role in meeting the government’s financing needs, especially as the country moves towards a more Shariah-compliant financial framework.