The Government of Pakistan has raised Rs69.955 billion in face value through its latest Government of Pakistan Hybrid Sukuk (GHS) auction, conducted through the Pakistan Stock Exchange (PSX) Auction System on November 11, 2026. The combined amount accepted remained substantially below the pre-auction target of Rs250 billion, which included Rs150 billion for fresh issues of fixed-rate discounted Sukuk and Rs100 billion for the reopening of a 10-year variable rental rate instrument. The auction attracted considerable investor participation across different maturities, with settlement scheduled for November 12, 2026. The proceeds were generated through competitive and non-competitive bids across the short-term and long-term Islamic financial instruments.
Under the Fixed Rate Discounted Government of Pakistan Hybrid Sukuk fresh issue, the government invited bids for three different maturities, including three-month, six-month and one-year instruments, against a target of Rs150 billion. The auction received total face value bids of Rs392.374 billion across these three tenors, indicating investor interest in government-backed Islamic investment instruments. From the competitive bidding process, the government accepted Rs51.601 billion in face value. The one-year Sukuk attracted the largest acceptance at Rs27.795 billion, with a cut-off yield of 12.4300% and a cut-off price of 88.9712. The three-month instrument followed with accepted bids of Rs19.606 billion at a cut-off yield of 12.1390% and a price of 97.2823, while the six-month tenor secured Rs4.2 billion at a cut-off yield of 12.2995% and a cut-off price of 94.2215.
In addition to competitive participation, the government accepted Rs7.287 billion through non-competitive bids across the three fixed-rate discounted Sukuk maturities. The three-month instrument accounted for Rs3.515 billion, while the six-month and one-year tenors received acceptances of Rs1.558 billion and Rs2.214 billion, respectively. The weighted average yields for these non-competitive acceptances stood at 12.11% for the three-month instrument, 12.30% for the six-month tenor and 12.40% for the one-year Sukuk. Following the inclusion of both competitive and non-competitive bids, the total accepted face value under the fixed-rate discounted Sukuk category reached Rs58.887 billion. The one-year maturity represented the largest share of the accepted amount at Rs30.009 billion, followed by the three-month tenor at Rs23.12 billion and the six-month instrument at Rs5.758 billion.
Alongside the fresh issuance of discounted Sukuk, the government also conducted the second reopening of its 10-year Variable Rental Rate (VRR) Government of Pakistan Hybrid Sukuk, which was originally issued on October 15, 2026. The reopening was conducted against a separate pre-auction target of Rs100 billion. The reference rate for the instrument was based on the latest six-month Treasury Bill weighted average yield, while the coupon rate for the first rental period was set at 12.1179%. The long-term Islamic instrument attracted total face value bids of Rs325.940 billion, with submitted bid prices ranging between 96.9181 and 99.2600. Despite the substantial participation, the government accepted only Rs11.068 billion in face value, remaining considerably below its announced target for the reopening.
Of the accepted amount under the 10-year variable rental rate Sukuk, Rs10 billion came through competitive bids at a cut-off price of 98.6000, corresponding to a cut-off yield of 12.3624%. This represented a spread of 0.2445 percentage points over the reference rate. The remaining Rs1.068 billion was accepted through non-competitive bids at a weighted average price of 99.0528 and a weighted average yield of 12.2815%. The combined acceptance from both bidding categories brought the total amount raised through the long-term variable rental rate instrument to Rs11.068 billion.
Overall, the latest auction generated Rs69.955 billion in government borrowing through Hybrid Sukuk instruments, combining Rs58.887 billion from fixed-rate discounted securities and Rs11.068 billion from the 10-year variable rental rate Sukuk. Against the combined pre-auction target of Rs250 billion, the accepted amount represented a significantly lower level of financing than initially planned. The auction results also highlighted differences in investor participation and government acceptance across short-term and long-term Islamic securities, with substantial bids received for both categories but a comparatively smaller portion accepted by the government.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.