PSX raises PKR 76.3 billion for Finance Ministry in 6th GoP Hybrid Sukuk auction
PSX raised PKR 76.3bn in the 6th GoP Hybrid Sukuk auction on May 20, with total bids reaching PKR 262bn, reflecting strong demand for Shariah-compliant government securities
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The Pakistan Stock Exchange raised PKR 76.3 billion for the Ministry of Finance through the 6th auction of the Government of Pakistan Hybrid Sukuk on May 20, 2026.
The auction attracted total bids of PKR 262 billion in face value, reflecting continued investor appetite for Shariah-compliant government securities. Meezan Bank served as Joint Financial Advisor, contributing to the structuring and execution of the Sukuk program.
What were the results of the 6th GoP Hybrid Sukuk auction?
The auction accepted bids for the one-year fixed rate discounted Sukuk at a cut-off rate of 12.4880%, a decline of 1.32 basis points. The government rejected all bids for the 10-year Variable Rental Rate Sukuk, which had a cut-off rental rate of 11.8569%, representing a spread of 0.4884% over the reference rate of 11.3685%. Total realized value of bids received stood at PKR 255 billion.
How is the GoP Hybrid Sukuk structured?
The Hybrid Sukuk combines an Ijarah Sale and Lease Back transaction, accounting for 55% of proceeds, with a Commodity Murabaha transaction covering the remaining 45%.
The instrument offers both a one-year fixed rate discounted tranche and a 10-year variable rental rate tranche. This structure allows the program to serve a range of institutional investors with different risk and tenor preferences.
Why is the GoP Hybrid Sukuk program significant for Pakistan?
The program has become an important tool for broadening Pakistan's investor base, supporting Islamic banking liquidity management, and giving the government an alternative funding channel through the capital market. The strong bidding response indicates continued demand for sovereign-backed Islamic instruments among banks, mutual funds, and other institutional investors seeking Shariah-compliant fixed income options. The successful issuance reflects collaborative efforts between the Ministry of Finance, the State Bank of Pakistan, and PSX to deepen the domestic Sukuk market through regular sovereign Islamic issuances.
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