The Government of Pakistan has raised Rs196.196 billion in face value through its latest Government of Pakistan Hybrid Sukuk (GHS) auction conducted through the Pakistan Stock Exchange (PSX) Auction System. The auction included the first reopening of 3-year and 5-year Fixed Rental Rate Hybrid Sukuk, originally issued on October 8, 2026, against a pre-auction target of Rs100 billion. The government received substantial investor interest, with total face value bids reaching Rs382.55 billion across both tenors. Of the total bids, Rs244.5 billion were submitted for the 3-year Sukuk and Rs138.05 billion for the 5-year instrument. The combined acceptance of competitive and non-competitive bids reached Rs196.196 billion, exceeding the initial target for the Fixed Rental Rate Sukuk offering.
Competitive bids accounted for Rs195.225 billion of the total amount accepted through the Hybrid Sukuk auction. The 3-year tenor attracted the largest share of accepted bids, with Rs135 billion in face value accepted at a cut-off price of 98.45 and a cut-off yield of 12.6407%. Meanwhile, the government accepted Rs60.225 billion for the 5-year tenor at a cut-off price of 98.188 and a cut-off yield of 12.7500%. The results indicate that the shorter-tenor instrument received a higher allocation, although both securities attracted considerable demand from investors. The competitive bidding results also established the respective cut-off prices and yields for the two instruments, reflecting the pricing levels at which the government accepted financing through the auction.
In addition to competitive bids, the government accepted Rs971 million through non-competitive bids across the two tenors. The 3-year Sukuk received Rs586 million in non-competitive acceptance at a weighted average price of 98.5271 and a weighted average yield of 12.6080%. For the 5-year instrument, non-competitive acceptance stood at Rs385 million, with a weighted average price of 98.2562 and a weighted average yield of 12.7307%. After combining competitive and non-competitive allocations, total acceptance for the 3-year Sukuk reached Rs135.586 billion, while the 5-year instrument recorded Rs60.610 billion. This brought the overall amount raised through the Fixed Rental Rate Hybrid Sukuk reopening to Rs196.196 billion in face value terms, highlighting the level of participation in the government’s Islamic financing instruments.
Separately, the PSX invited bids for a fresh issue of the 10-year Fixed Rate Zero Coupon Government of Pakistan Ijarah Sukuk (GIS), scheduled to mature on November 5, 2036. The government had set a pre-auction target of Rs25 billion for this instrument, but investor participation remained limited, with total face value bids amounting to only Rs1.840 billion. The bids were received within a price range of 29.8528. However, the government rejected all competitive bids submitted for the 10-year instrument and did not accept any non-competitive bids either. Consequently, the auction recorded zero acceptance, meaning no funds were raised through this particular Ijarah Sukuk issuance. The outcome contrasted with the strong demand recorded in the 3-year and 5-year Hybrid Sukuk reopening conducted through the same auction system.
The latest auction results reflect differing levels of investor demand across the government’s Islamic financing instruments, with the 3-year and 5-year Fixed Rental Rate Hybrid Sukuk attracting substantial participation while the fresh 10-year Zero Coupon Ijarah Sukuk received no accepted bids. The Rs196.196 billion raised through the Hybrid Sukuk reopening provides financing to the government through Shariah-compliant instruments, while the rejection of all bids for the 10-year issue indicates that the government did not proceed with borrowing through that particular offering. The auction also provides an indication of the yields and pricing at which investors participated in the shorter and medium-term Sukuk instruments. The results were released through the PSX Auction System and cover both the accepted Hybrid Sukuk allocations and the separate 10-year Ijarah Sukuk bidding outcome.
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