The Government of Pakistan, in collaboration with the Pakistan Stock Exchange (PSX) and the Ministry of Finance’s Debt Management Office (DMO), has announced its plan to raise Rs750 billion through a series of Ijarah Sukuk auctions scheduled from November 2025 to January 2026. This initiative represents a significant effort to mobilize Islamic financing instruments while broadening investor participation in Pakistan’s debt capital market.
According to the auction calendar released by PSX, the Sukuk auctions will take place on November 26, 2025, December 10, 2025, and January 7, 2026. Settlement for each auction will occur one day after the respective bidding dates, ensuring a streamlined and efficient process for investors.
The issuance will include three distinct categories of Ijarah Sukuk: GIS-Discounted, GIS-Fixed Rental Rate, and GIS-Variable Rental Rate. The government intends to mobilize Rs300 billion each through the GIS-Discounted and GIS-Fixed Rental Rate Sukuk, while Rs150 billion will be raised via the GIS-Variable Rental Rate instrument. This diversified approach aims to cater to different investor preferences and risk appetites while strengthening Pakistan’s Islamic finance ecosystem.
Under the new framework, the 10-year Fixed Rental Rate Sukuk will be issued as a Zero-Coupon instrument, providing long-term investors with a predictable return while simplifying pricing and cash flow management. Meanwhile, the 5-year Variable Rental Rate Sukuk will be discontinued starting November 2025, reflecting the government’s strategic shift towards longer-tenor and more stable Islamic financing instruments.
Officials from the PSX and DMO emphasized that these auctions are part of the government’s broader agenda to enhance transparency, improve market efficiency, and promote Islamic finance as a viable alternative for both institutional and retail investors. By leveraging Sukuk instruments, the government aims to attract diversified investment while aligning with Shariah-compliant financing principles.
Market analysts view the upcoming Sukuk auctions as a positive signal for Pakistan’s financial markets, noting that the structured issuance of discounted, fixed, and variable rental rate instruments can provide liquidity, improve investor confidence, and strengthen the sovereign debt portfolio. The clear calendar also allows investors to plan participation strategically, optimizing allocation across different instruments and tenors.
The Ijarah Sukuk initiative underscores Pakistan’s commitment to integrating Islamic finance instruments into mainstream capital market operations, facilitating financial inclusion, and creating sustainable funding channels for government projects. Investors are expected to closely monitor auction results, yields, and subscription rates, which will offer insights into market sentiment and appetite for Shariah-compliant instruments.
As the auctions approach, the government continues to encourage active participation from banks, financial institutions, and corporate investors, ensuring that the Sukuk market remains competitive, inclusive, and aligned with global best practices in Islamic finance.
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