Pakistan raises Rs118bn in sukuk auction

The Government of Pakistan raised Rs118.05 billion in its 32nd auction of Government of Pakistan Ijarah Sukuk (GIS), reflecting continued demand for Shariah-compliant sovereign instruments, according to data from the Pakistan Stock Exchange.

The auction drew total bids of Rs445.49 billion, indicating strong participation from investors and liquidity within the Islamic banking sector.

Meezan Bank, acting as the lead joint financial adviser, supported the structuring and execution of the transaction.

The government accepted one-year sukuk at a rental rate of 11.49%, while five-year fixed-rate sukuk were priced at 11.75%.

The 10-year variable rental sukuk also attracted notable demand, suggesting increasing investor interest in floating-rate Shariah-compliant instruments.

The sukuk issuance comes as Pakistan advances efforts to transition towards an Islamic financial system following the 26th Constitutional Amendment, which mandates the elimination of interest-based financing.

In this context, sukuk instruments are expected to play a larger role in meeting the government’s financing needs while maintaining compliance with Shariah principles.

The response to the latest auction highlights investor appetite for sovereign Islamic securities as the country expands its Shariah-compliant financing framework.