The Government of Pakistan raised more than Rs162 billion through a Primary Market Auction for Government of Pakistan Hybrid Sukuk conducted through the Pakistan Stock Exchange auction system on August 5, 2026, with strong demand recorded across both fixed-rate discounted and variable rental rate instruments. The auction covered three fixed-rate discounted sukuk maturities of three months, six months and one year, alongside a reopening of a 10-year Variable Rental Rate Hybrid Sukuk issued on July 23, 2026. The fixed-rate portion had a pre-auction target of Rs75 billion, while the 10-year Variable Rental Rate reopening carried a separate target of Rs50 billion. Across the fixed-rate instruments, total bids reached a face value of Rs344.91 billion, while the 10-year Variable Rental Rate sukuk attracted bids worth Rs412.02 billion in face value, demonstrating substantial demand for government Islamic securities through the capital market.
For the fixed-rate discounted Government Hybrid Sukuk, the issue and auction settlement date was August 6, 2026. The three-month tenor, maturing on October 29, 2026, received bids with a combined face value of Rs157.75 billion and a realized amount of Rs153.68 billion. The six-month instrument, scheduled to mature on February 4, 2027, attracted face value bids of Rs64.66 billion, with a realized amount of Rs61.08 billion. Meanwhile, the one-year sukuk, maturing on August 5, 2027, received bids amounting to Rs122.50 billion in face value, with a realized amount of Rs109.52 billion. Across the three maturities, total bids reached Rs344.91 billion in face value terms, compared with a realized amount of Rs324.28 billion. Competitive bids accepted across the fixed-rate instruments amounted to Rs105.23 billion in face value, with the three-month tenor accepted at a cut-off price of Rs97.4358 and a cut-off yield of 11.4353 percent. The six-month tenor was accepted at a cut-off price of Rs94.4921 and a yield of 11.6899 percent, while the one-year tenor recorded the highest cut-off yield among the fixed-rate instruments at 11.8400 percent, with a cut-off price of Rs89.4394.
Non-competitive participation added another Rs3 billion in face value to the fixed-rate sukuk acceptances, bringing total acceptance across competitive and non-competitive bids to Rs108.23 billion in face value terms and a realized amount of Rs100.19 billion. The weighted average yields for the non-competitive bids stood at 11.4106 percent for the three-month tenor, 11.6646 percent for the six-month tenor and 11.7874 percent for the one-year instrument. The figures show that investors placed significant demand across short and medium-term Shariah compliant government securities, with the one-year maturity carrying the highest cut-off yield among the three fixed-rate offerings. The pricing structure also reflected different investor expectations across the maturities, while the volume of bids substantially exceeded the government’s pre-auction target of Rs75 billion for the fixed-rate portion.
The second component of the auction involved the reopening of the 10-year Variable Rental Rate Government Hybrid Sukuk, originally issued on July 23, 2026, with a maturity date of July 23, 2036. The pre-auction target for the reopening was Rs50 billion, while the reference coupon rate for the first rental period was set at 11.3904 percent. The instrument attracted total bids of Rs412.02 billion in face value, with a realized amount of Rs405.35 billion and a price premium of Rs1.80 billion. After including the premium, the total realized amount from the bids stood at Rs407.15 billion, with bid prices ranging between Rs96.8470 and Rs99.2500 per Rs100. Competitive bids accepted for the 10-year Variable Rental Rate sukuk amounted to Rs62.50 billion in face value. These bids generated a realized amount of Rs61.84 billion, along with a price premium of Rs273.06 million, taking the total realized amount to Rs62.12 billion. The accepted competitive bids carried a cut-off price of Rs98.9404 and a cut-off yield of 11.5704 percent.
Non-competitive bids for the 10-year Variable Rental Rate sukuk amounted to Rs250.41 million in face value, with a realized amount of Rs247.78 million and a price premium of Rs1.09 million. Including the premium, the total realized amount from these non-competitive bids reached Rs248.87 million, at a weighted average price of Rs98.9508 and a weighted average yield of 11.5686 percent. Overall acceptance for the 10-year Variable Rental Rate sukuk stood at Rs62.75 billion in face value terms, generating a realized amount of Rs62.09 billion and a price premium of Rs274.15 million, which brought the total realized amount to Rs62.37 billion. When combined with the Rs100.19 billion realized from the fixed-rate discounted sukuk, the government raised approximately Rs162.56 billion through the two components of the Pakistan Stock Exchange auction. The strong bid volumes, particularly the more than Rs412 billion demand for the 10-year Variable Rental Rate instrument, underline continued investor participation in government-backed Islamic securities and provide the government with another avenue for raising funds through Shariah compliant instruments in Pakistan’s capital market.
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