Pakistan Domestic Sukuk Company Limited, operating through the Ministry of Finance, has announced the 14th Government of Pakistan Hybrid Sukuk auction set to take place on August 5, 2026. The auction will be conducted through the primary market mechanism of the Pakistan Stock Exchange, aiming for a total collection target of 125 billion rupees across four distinct instruments. The hybrid structure combines an Ijarah sale and leaseback transaction with a commodity Murabaha transaction, allocating 55 percent of total proceeds to the sale and leaseback component and 45 percent to the commodity trade portion. Standard operational guidelines will apply equally to this auction and routine Ijarah paper issuances. The debt issuance comprises four sovereign instruments tailored for varying maturities and rental structures. Three fresh issues will feature fixed discounted rates, including a 3-month tenure carrying a target of 25 billion rupees maturing late October 2026, a 6-month paper targeting 25 billion rupees maturing early February 2027, and a 1-year instrument targeting 25 billion rupees maturing in August 2027. The fourth offering involves a re-opening of the 10-year variable rental rate instrument originally issued on July 23, 2026, seeking to raise 50 billion rupees. For this variable rental paper, the first period coupon benchmark rate is set at 11.3904 percent, corresponding to a price premium of 21.8446 rupees per 5,000 rupees face value to account for accrued days prior to settlement.
Allocations across all instruments will follow a non-uniform pricing mechanism, meaning competitive bidders will be assigned amounts at their specific bid prices, whereas non-competitive submissions will settle at the weighted average yield. Participation is structured to allow broad access, with a minimum bid threshold set at 5,000 rupees. While competitive bids face no maximum limits, non-competitive orders per investor are capped at 0.25 percent of the pre-auction target or 500 million rupees, whichever amount is smaller. Official bidding will open on August 5 from 10:00 AM to 12:00 PM, with final financial settlement taking place the following morning on August 6.
Eligibility for the auction spans a diverse spectrum of market participants, including individual investors, institutional entities, corporate bodies, non-banking finance companies, insurance entities, Roshan Digital Account holders, non-resident Pakistanis, foreign buyers, and international Islamic banks. Clearing members of the National Clearing Company of Pakistan Limited can participate on behalf of client accounts, managed funds, or proprietary portfolios. Investors lacking dedicated central depository accounts can utilize facilitation account services provided by the depository company to access the primary market directly.
Regulatory compliance requires participants subject to advance commitments to submit formal expressions of interest along with a 10 percent cash deposit instrument-wise between July 29 and August 3, 2026. Required funds must be deposited electronically through designated terminal screens by August 4 to avoid disqualification from the live bidding session. Furthermore, participants who were inactive in the preceding auction must complete investor registration procedures prior to the session, ensuring complete identification mapping with the central depository system. The issuance is supported by a consortium of financial and shariah advisors, including Meezan Bank Limited, Dubai Islamic Bank Pakistan, Bank Islami Pakistan, and Bank Alfalah. Meezan Bank will serve as the transaction agent for commodity purchases on behalf of investors, while the clearing company acts as the commodity sale agent for the finance ministry. The clearing entity will also act as paying agent, with the central depository registrar managing registry operations. Following completion of the settlement process, the instruments will be inducted into the depository system for trading on the main board of the stock exchange.
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