Pakistan marked a historic milestone in Islamic finance in 2025, as the Ministry of Finance (MoF), through its Debt Management Office and in collaboration with Joint Financial Advisors, completed the largest Sukuk issuance ever recorded in a single year, surpassing Rs2 trillion. This achievement, highlighted by Khurram Schehzad on social media, represents a major breakthrough for the country’s Shariah-compliant financing framework.
During 2025, the government conducted 61 Sukuk issuances spanning 1-year, 3-year, 5-year, and 10-year tenors under both fixed and variable rate structures. Overall Shariah-compliant issuance for the year reached Rs2.5 trillion, reflecting strong investor demand and an expanding Islamic capital market.
A defining highlight of the year was the launch of Pakistan’s first-ever Green Sukuk, which was oversubscribed by 5.4 times. The Sukuk was backed by cashflows linked to major public-sector entities, including Pakistan Railways, TDAP, NHA, CDA, PAA, PSB, and KPT, signaling a new direction in sustainable and asset-backed Islamic financing.
Between 2019 and 2025, total Sukuk issuance in Pakistan climbed to Rs8.7 trillion, with outstanding Sukuk now standing at Rs6.6 trillion. Total outstanding Shariah-compliant government instruments have reached Rs7.1 trillion, reflecting rapid structural development within the Islamic capital market.
The share of Shariah-compliant instruments in the government’s domestic debt portfolio rose to approximately 14.5% by December 2025, up from 12.6% in June 2025. This steady increase positions the Ministry of Finance on track to achieve its target of raising the share of Islamic instruments to 20% by FY28.
The record Sukuk issuances highlight growing investor confidence, improved sovereign debt management, and the government’s commitment to diversifying funding sources. With a stabilizing macroeconomic environment and a clearly defined strategy for Islamic finance, Pakistan is strengthening the foundations of a more resilient, inclusive, and forward-looking government securities market.
This landmark progress underscores Pakistan’s commitment to advancing Shariah-compliant financial instruments, supporting sustainable development, and fostering long-term confidence in the Islamic capital market.
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