The Pakistan Stock Exchange has officially announced the schedule for its 6th primary market auction of Government of Pakistan Hybrid Sukuk, set to take place on Wednesday, May 20, 2026. Utilizing the advanced PSX Auction System, the government aims to raise a combined target of Rs 200 billion through two distinct Shariah-compliant instruments. This upcoming auction represents a continued effort by the federal government to diversify its domestic debt portfolio while providing institutional and retail investors with secure, high-yield Islamic investment opportunities. The settlement for all successful competitive and non-competitive bids is scheduled for the following day, ensuring a swift transition of funds into the national exchequer.
The structure of the GoP Hybrid Sukuk is particularly innovative, blending two different Shariah principles to meet contemporary financial requirements. The transaction is designed as a hybrid model where 55 percent of the proceeds are managed through an Ijarah Sale and Lease Back arrangement, while the remaining 45 percent is allocated to a Commodity Murabaha transaction. This balanced approach ensures that the instruments remain fully compliant with Islamic jurisprudence while offering the liquidity and structural stability required by modern capital markets. The Pakistan Domestic Sukuk Company Limited, operating under the Ministry of Finance, serves as the formal issuer for these significant debt securities.
Investors participating in the auction will have two primary options to choose from, depending on their risk appetite and investment horizon. The first is a fresh issue of a 1-Year Fixed Rate Discounted GoP Hybrid Sukuk, which carries a target size of Rs 150 billion and is slated to mature on May 20, 2027. The second option is the third re-opening of a 10-Year Variable Rate of Return GoP Hybrid Sukuk, aiming for Rs 50 billion with a long-term maturity date of April 16, 2036. Both instruments carry a face value of Rs 5,000, which also serves as the minimum entry point for interested bidders, making the auction accessible to a wide range of participants.
The auction process is open to a broad spectrum of market players, including Broker Clearing Members, Non-Broker Clearing Members, and Professional Clearing Members of the National Clearing Company of Pakistan Limited. These entities can bid on behalf of their proprietary accounts, managed funds, or a diverse client base that includes individual investors, institutional trusts, and corporate bodies. Notably, the auction is also accessible to non-resident Pakistanis and Roshan Digital Account holders, further integrating the global Pakistani diaspora into the domestic capital market. The operational protocols for this hybrid auction remain identical to those of standard GoP Ijarah Sukuk auctions, providing a familiar environment for regular market participants.
To participate in the bidding process, eligible members are required to submit an expression of interest along with a mandatory 10 percent advance cash deposit per instrument through the NCCPL terminal. This deposit window is open from May 14 until May 18, 2026. On the day of the auction, the active bidding window will run for two hours, starting from 10:00 a.m. While there is no maximum limit for competitive bids, non-competitive bids are subject to a cap of 0.25 percent of the target amount or Rs 500 million, whichever is lower. This structured approach is intended to ensure a fair and transparent allocation of the government’s Shariah-compliant debt, supporting the overall depth and liquidity of the national Islamic finance ecosystem.
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