Pakistan plans Rs100 billion Sukuk program for National Grid Company

Pakistan plans to raise up to Rs100 billion through a Shariah-compliant Sukuk program for the National Grid Company of Pakistan Limited, the Finance Ministry said Friday. The bonds will be offered in multiple public offerings on the Pakistan Stock Exchange, as the government seeks to deepen the corporate debt market.

What is the National Grid Company Sukuk program?

The program allows the National Grid Company of Pakistan Limited to raise funds from investors through Shariah-compliant bonds with a maturity of up to 10 years. It begins with an initial offering of up to Rs20 billion. Offerings will be listed on the PSX, subject to regulatory approvals and market conditions.

What did the Capital Market Development Council discuss?

Finance Minister Muhammad Aurangzeb chaired a meeting of the Capital Market Development Council to review progress on reforms. The reforms aim to expand Pakistan's corporate debt market, broaden the investor base and mobilize long-term investment.

Aurangzeb welcomed the Sukuk initiative, saying it would demonstrate the potential of listed corporate debt instruments. He said it would also encourage other entities to raise long-term financing through the capital market.

How much has Pakistan's corporate debt market grown?

According to the ministry, corporate debt issuances reached Rs291 billion during January-September 2026. That followed Rs326 billion raised in 2025, a 30% increase over 2024.

The market also recorded 12 new listed corporate debt issuances worth Rs45.4 billion between February 2025 and September 2026. The ministry said this reflected increased activity in Sukuk and other debt instruments.

The meeting was told that average daily trading value in the secondary debt market rose to more than Rs10 billion in fiscal year 2027 through Oct. 15. The figure was Rs3.93 billion in fiscal year 2026. Thirteen banks have been onboarded for secondary-market trading, supported by coordination among the PSX, Pakistan Banks' Association, Central Depository Company and National Clearing Company of Pakistan.

What reforms is the government planning for corporate debt?

The government is facilitating corporate debt issuance through dedicated desks at the Securities and Exchange Commission of Pakistan (SECP) and the PSX. A one-window listing mechanism is already operational, while efforts are underway to integrate the Central Depository Company into the system.

The council stressed the need to encourage more public offerings and enable a wider range of businesses to access financing through capital markets. Aurangzeb called for greater efforts to help small and medium-sized enterprises, directing the SECP to work with the PSX and other platforms on practical solutions.

The council also reviewed proposals to address tax-related distortions, streamline issuance procedures, reduce transaction costs, improve market liquidity and strengthen investor protection. The SECP said it had consulted 17 pension fund managers and 44 insurance companies on ways to increase institutional investment in debt instruments.

Aurangzeb urged stakeholders to turn regulatory reforms into higher issuance, deeper liquidity and broader investor participation. He said Pakistan needed to expand financing options beyond conventional bank lending and mobilize domestic savings for productive investment. He also encouraged the SECP and PSX to renew engagement with global index provider MSCI to explore a possible reclassification of Pakistan as an emerging market.