The National Grid Company of Pakistan Limited (NGC) is planning to raise up to Rs100 billion through a Shariah-compliant Sukuk programme, with an initial issuance of up to Rs20 billion, as part of efforts to expand the use of Pakistan’s capital market for long-term corporate financing. The proposed programme will have a maturity period of up to 10 years and will be launched in phases through public offerings listed on the Pakistan Stock Exchange (PSX). The proposed fundraising remains subject to regulatory approvals and prevailing market conditions. The plan was shared with the Finance Division during a meeting on Friday, October 30, 2026, as the government continues to encourage companies to access debt financing through listed instruments.
The proposal was discussed at the fourth meeting of the Capital Market Development Council (CMDC), chaired by Finance Minister Muhammad Aurangzeb at the Finance Division. The finance minister welcomed NGC’s proposed Sukuk issuance and described it as an opportunity to demonstrate the potential of listed corporate debt instruments. He also emphasised the importance of encouraging other companies to consider the capital market as a source of long-term funding. The proposed programme could provide an additional financing route for NGC while contributing to the development of Pakistan’s Shariah-compliant debt market. Its phased structure would allow the company to raise funds over time rather than relying on a single large issuance, subject to the required approvals and market conditions.
The council was also informed that corporate debt issuances reached Rs291 billion between January and September 2026, following Rs326 billion raised throughout 2025. The amount mobilised during 2025 was approximately 30 percent higher than the total recorded in 2024, indicating increased activity in the country’s corporate debt market. In addition, 12 new listed corporate debt issuances, comprising Sukuk and other debt instruments, raised Rs45.4 billion between February 2025 and September 2026. These figures were presented as part of the council’s review of developments in the market and its efforts to encourage more businesses to raise funds through public offerings. Greater participation by corporate issuers is considered important for widening the range of investment opportunities and reducing reliance on traditional bank financing.
The Securities and Exchange Commission of Pakistan (SECP) and PSX have established dedicated Corporate Debt Market Desks to assist companies interested in issuing debt instruments. A one-window listing mechanism is also operational through the two institutions, offering simplified procedures and online information for prospective issuers. Work is underway to include the Central Depository Company (CDC) in this arrangement, with the objective of further streamlining the process. The council reviewed a broader set of reforms covering taxation, debt issuance procedures, market infrastructure, investor protection and enforcement. These initiatives are intended to reduce transaction costs, improve liquidity and make the listing process more accessible for companies. The discussions also covered the potential for greater use of green and thematic Sukuk, which could provide financing for projects and activities linked to specific investment objectives.
Trading activity in Pakistan’s debt market has also recorded an increase. Average daily traded value rose from Rs3.93 billion during fiscal year 2025-26 to more than Rs10 billion in fiscal year 2026-27 as of October 15, 2026. The council was informed that 13 banks had been onboarded and were actively participating in secondary-market trading arrangements. Members discussed additional steps to facilitate banks’ participation in government Sukuk trading through PSX and improve market liquidity. A more active secondary market can provide investors with greater opportunities to trade existing debt securities, while potentially making listed instruments more attractive to institutions seeking investment options with greater flexibility.
The council also examined the participation of pension funds and insurance companies in corporate debt investments. SECP informed members that it had consulted 17 pension fund managers and 44 insurance companies to identify the factors limiting their investment in corporate debt instruments. The consultations covered the availability of suitable investment products, secondary-market liquidity, issuer disclosures and the wider investment framework. The feedback is expected to help identify changes that could make corporate debt instruments more accessible to these institutional investors. Their participation could broaden the investor base available to companies seeking long-term financing and support demand for future Sukuk and other listed debt offerings.
Finance Minister Aurangzeb also directed SECP to coordinate with PSX and other relevant platforms to develop practical financing solutions for small and medium-sized enterprises (SMEs). He called for stronger engagement with investment banks, financial advisers and business organisations to help companies understand and access capital market funding. The discussion highlighted the need to make debt issuance more accessible beyond large corporations, particularly for businesses that may face difficulties obtaining long-term financing through conventional channels. The finance minister further urged SECP and PSX to renew engagement with MSCI regarding Pakistan’s potential future reclassification to Emerging Markets status. He said the next phase of capital market reforms should result in higher corporate debt issuance, improved liquidity and wider investor participation. NGC’s proposed Rs100 billion Sukuk programme forms part of this broader effort to expand listed financing options and increase the role of Pakistan’s capital market in mobilising long-term funds.
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