The Government of Pakistan has raised Rs 116.4 billion through the first-ever auction of the Government of Pakistan Hybrid Sukuk (GHS) conducted via the Pakistan Stock Exchange (PSX) auction platform, marking a significant development in the country’s Islamic debt market.
According to official details, investor interest remained strong, with total bids reaching Rs 290.29 billion in face value and Rs 280.482 billion in realized value. The response reflects continued confidence in Pakistan’s Shariah-compliant sovereign instruments.
Meezan Bank acted as the Lead Joint Financial Advisor for the issuance, alongside Dubai Islamic Bank Pakistan, BankIslami Pakistan Limited, and Bank Alfalah Islamic, contributing to the structuring and execution of the transaction.
The auction featured two Sukuk instruments. The 1-year fixed-rate discounted Sukuk was closed at a cut-off yield of 11.8000%, showing an increase of 30.01 basis points. The 10-year variable rental rate Sukuk was priced at 11.7185%, based on a reference rate of 11.3685% with a 35-basis-point spread. Both instruments attracted strong demand across maturities.
Officials described the issuance as a first-of-its-kind structure in Pakistan, combining Murabaha and Ijarah-based components within a single sovereign Hybrid Sukuk framework. The design is aimed at expanding Shariah-compliant financing options and deepening the domestic Islamic capital market.
The initiative also aligns with Pakistan’s broader policy direction to transition toward an Islamic banking and finance system by January 2028. A major part of this roadmap involves gradually shifting government borrowing toward Shariah-compliant instruments, with Sukuk issuances playing a central role in that transition.
