The Government of Pakistan raised a combined Rs76.15 billion in face value through its latest Government of Pakistan Hybrid Sukuk auction conducted through the Pakistan Stock Exchange Auction System. The amount raised remained below the combined pre-auction target of Rs100 billion, which comprised a Rs75 billion target for fresh Fixed Rate Discounted Government of Pakistan Hybrid Sukuk and a Rs25 billion target for the reopening of the 10-Year Variable Rental Rate Government of Pakistan Hybrid Sukuk.
The fresh issue of Fixed Rate Discounted Government of Pakistan Hybrid Sukuk covered three maturities, including 3-month, 6-month and 1-year instruments. Against the Rs75 billion pre-auction target, investors submitted bids carrying a total face value of Rs131.855 billion across the three tenors. The government accepted Rs49.163 billion through competitive bids, with the 3-month instrument receiving the largest accepted amount at Rs28.416 billion.
The 3-month Fixed Rate Discounted Hybrid Sukuk was accepted at a cut-off price of 97.4217, corresponding to a cut-off yield of 11.4998%. The 1-year tenor followed with Rs20.747 billion accepted through competitive bids at a cut-off price of 89.3228 and a cut-off yield of 11.9863%. The government rejected all bids submitted for the 6-month tenor, resulting in no acceptance for that maturity under the competitive bidding process.
In addition to the competitive bids, the government accepted Rs1.924 billion through non-competitive bids in the Fixed Rate Discounted Hybrid Sukuk auction. Of this amount, Rs1.134 billion was accepted for the 3-month tenor, while Rs0.790 billion was accepted for the 1-year tenor. The weighted average price for the 3-month non-competitive allocation stood at 97.4244, with a weighted average yield of 11.4874%, while the 1-year allocation carried a weighted average price of 89.3642 and a weighted average yield of 11.9343%.
Combining the competitive and non-competitive allocations, the government raised a total of Rs51.087 billion through the Fixed Rate Discounted Government of Pakistan Hybrid Sukuk fresh issue. The 3-month tenor accounted for Rs29.550 billion of the total acceptance, while the 1-year tenor contributed Rs21.537 billion. No amount was accepted against the 6-month instrument, leaving its total acceptance at zero.
Alongside the fresh issue, the Pakistan Stock Exchange conducted the fourth reopening of the 10-Year Variable Rental Rate Government of Pakistan Hybrid Sukuk. The instrument was originally issued on July 23, 2026, and the reopening carried a pre-auction target of Rs25 billion. The reference or coupon rate for its first period was set at 11.3904%, with the long-term floating-rate instrument attracting substantial investor participation during the latest auction.
The 10-Year Variable Rental Rate Hybrid Sukuk received total face value bids of Rs253.075 billion, with quoted prices ranging from 96.8876 to 98.5918. Against the Rs25 billion target, the government accepted Rs25.063 billion in total. Competitive bids accounted for Rs25 billion at a cut-off price of 98.5918 and a cut-off yield of 11.6384%.
A further Rs0.063 billion was accepted through non-competitive bids for the 10-Year Variable Rental Rate Hybrid Sukuk. The allocation was made at a weighted average price of 98.5918, while the weighted average yield was reported at 11.6284%. With both competitive and non-competitive allocations included, total acceptance under the reopening reached Rs25.063 billion.
The combined outcome of the two auction segments brought the government’s total face-value borrowing through the latest Hybrid Sukuk auction to Rs76.15 billion. The results show a notable difference in investor participation between the short- and medium-term fresh issuance and the long-term variable rental rate instrument, with the latter attracting Rs253.075 billion in bids against its Rs25 billion target.
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