The Government of Pakistan has successfully raised Rs 116.4 billion in face value through the first auction of the Government of Pakistan Hybrid Sukuk (GHS), conducted via the Pakistan Stock Exchange (PSX) auction system.
This marks a major milestone in the development of the country’s Islamic capital market and sovereign Shariah-compliant financing program.
The auction witnessed strong investor participation, with total bids amounting to Rs. 290.29 billion in face value and Rs. 280.482 billion in realized value, reflecting robust market confidence in Pakistan’s Islamic financial instruments.
Meezan Bank, serving as Lead Joint Financial Advisor, played a key role in structuring and executing the issuance alongside Dubai Islamic Bank Pakistan, BankIslami Pakistan Limited, and Bank Alfalah Islamic, highlighting strong collaboration among leading Islamic financial institutions.
The Sukuk auction comprised two innovative Shariah-compliant instruments. The 1-Year Fixed Rate Discounted Sukuk achieved a cut-off rate of 11.8000 percent, reflecting an increase of 30.01 basis points.
Meanwhile, the 10-Year Variable Rental Rate Sukuk was priced at 11.7185 percent, based on a reference rate of 11.3685 percent with a spread of 35 basis points.
This transaction is historic and the first of its kind in Pakistan, as it combines Murabaha and Ijarah structures within a single sovereign Hybrid Sukuk framework. The innovative structure significantly expands the government’s Shariah-compliant financing options while contributing to the deepening and sophistication of Pakistan’s domestic Islamic debt capital market.
The successful launch of the Hybrid Sukuk also aligns with Pakistan’s national agenda to transition toward an Islamic banking and finance system by January 2028, in line with constitutional and policy commitments to eliminate interest-based financing.
