The State Bank of Pakistan has announced plans to purchase Government of Pakistan Ijara Sukuk worth a combined Rs550 billion through two auctions scheduled for September and October 2026. The purchases will be conducted on a Bai Muajjal basis, which involves deferred payment, and the tender has been issued to Islamic banks and Islamic banking branches operating in Pakistan. The initiative forms part of the State Bank’s arrangements for managing Islamic banking market operations through Shariah-compliant instruments.
The Domestic Markets and Monetary Management Department of the State Bank of Pakistan issued the auction tender notice for the outright purchase of Government of Pakistan Ijara Sukuk on a deferred payment basis. The tender is being conducted in accordance with the provisions of SBP-DMMD Circular No. 18 dated October 22, 2015. Under the announced schedule, eligible Islamic banking institutions will be able to submit tenders for the specified Government of Pakistan Ijara Sukuk securities against the targets assigned for each auction.
The first auction is scheduled for September 30, 2026, with the delivery of the Sukuk planned for October 1, 2026. The auction carries a target of Rs150 billion and involves GIS issue PK05S0610266. The Bai Muajjal tenor for the transaction is three years, with the deferred payment maturity date set for October 1, 2029. The auction will provide eligible Islamic banking institutions with an opportunity to participate in the purchase arrangement under the terms specified by the central bank.
The second auction will take place on October 28, 2026, with Sukuk delivery scheduled for October 29, 2026. This auction carries a significantly higher target of Rs400 billion and relates to GIS issue PK05S2910268. Like the September auction, the Bai Muajjal tenor is three years. The maturity date for the deferred payment arrangement has been set for October 29, 2029. Together, the two auctions bring the total purchase target to Rs550 billion.
The auction schedule specifies that tenders will be received up to 12:00 hours on the respective auction dates. The opening of tenders will be communicated to participating institutions through email, while the auction result will be conveyed on the same date. This process provides participating Islamic banks and Islamic banking branches with the required timetable for submitting their bids and receiving the outcome of the respective auction.
The State Bank has also stated that working arrangements and bid submission details for each auction date will be communicated separately through email to all Islamic banking institutions. This additional communication will provide participating institutions with operational information required for submitting tenders under the announced purchase programme. The arrangements are intended to ensure that eligible institutions have the necessary details before the respective auction dates.
The use of Bai Muajjal in the announced transactions provides a deferred payment structure for the purchase of the Government of Pakistan Ijara Sukuk. The three-year tenor applies to both auctions, while the individual delivery and maturity dates correspond to the respective auction schedules. The differing targets of Rs150 billion and Rs400 billion result in a larger share of the overall purchase programme being allocated to the October auction.
The latest tender notice adds to the State Bank of Pakistan’s ongoing operations involving Islamic banking instruments and provides eligible Islamic banking institutions with a defined schedule for participating in the Sukuk purchase process. With a combined target of Rs550 billion, the September and October auctions will cover two Government of Pakistan Ijara Sukuk issues, both structured around three-year Bai Muajjal arrangements and subject to the auction procedures communicated by the central bank.
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