The Ministry of Finance (MoF), in collaboration with the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP), Joint Financial Advisors (JFAs) – BIPL, DIB, BAFL led by Meezan Bank Limited (MEBL), together with the Capital Market Infrastructure Institutions (CMIIs); Pakistan Stock Exchange Limited (PSX), National Clearing Company of Pakistan Limited (NCCPL) and Central Depository Company of Pakistan Limited (CDCPL) has successfully completed the inaugural issuance of the Short-Term Government of Pakistan Hybrid Sukuk on July 22, 2026, marking a significant milestone for Pakistan’s capital market.
The inaugural issuance introduces 3-month and 6-month Shariah-compliant instruments backed by the sovereign credibility of the Government of Pakistan, extending the range of tenors available under the GoP Sukuk program. The addition of short-term instruments broadens the investment avenues available to investors, supports liquidity management across the Islamic financial system, and further deepens the domestic Shariah-compliant debt market.
The issuance is complemented by a revised allocation methodology based on a Non-Uniform Pricing mechanism, designed to enhance transparency, improve price discovery, and provide investors with greater access to diversified investment opportunities. Under the revised methodology, competitive bidders are allocated at their accepted bid rates, while non-competitive bidders are allocated at the weighted average Price/ Yield. The mechanism is applicable to all GoP Sukuk types issued through PSX, namely Fixed Rate Discounted (FRD), Fixed Rental Rate (FRR), Variable Rental Rate (VRR) and Fixed Rate Zero Coupon (FRZ).
Through the auction held on July 22, 2026, PSX raised PKR 239.325 billion for the Ministry of Finance. The auction received total bids worth PKR 770.234 billion in face value, equivalent to PKR 741.287 billion in realized value, reflecting strong market participation and investor confidence in Shariah-compliant government securities.
The cut-off rates determined in the auction are set out below:
Tenor | Cut-off Price | Cut-off Yield | W.A. Price | W.A. Yield |
3-Month Discounted | 97.4218 | 11.4994% | 97.4345 | 11.4413% |
6-Month Discounted | 94.4920 | 11.6902% | 94.5462 | 11.5685% |
1-Year Discounted | 89.4394 | 11.8400% | 89.5091 | 11.7526% |
10-Year VRR | 98.8919 | 11.5803% | 99.0213 | 11.5580% |
The 10-Year VRR Sukuk carries a reference/coupon rate of 11.3904%.
The MoF accepted approximately 32% of the total realized value of bids received across the four tenors. Out of the total amount raised, PKR 162.796 billion was accepted in the discounted instruments of 3-month, 6-month and 1-year, while the 10-year Variable Rental Rate (VRR) Sukuk accounted for PKR 76.529 billion.
PSX remains committed to promoting Shariah-compliant investment avenues and strengthening the Islamic financial ecosystem in Pakistan. On behalf of the Capital Market Infrastructure Institutions (CMIIs), the management of Pakistan Stock Exchange (PSX) congratulates all stakeholders on the successful inaugural issuance of the Short-Term Government of Pakistan Hybrid Sukuk.
For further information and details regarding GoP Sukuk, including the Auction Calendar, latest Auction Results and other relevant documents, please visit the PSX website or click on the following link: https://www.psx.com.pk/psx/product-and-services/products/govt-debt-securities-auction
