The Pakistan Stock Exchange (PSX) has officially released the term sheet for a 10-Year Fixed Rate of Return (FRR) Government of Pakistan Ijarah Sukuk, providing detailed terms for a Shariah-compliant investment opportunity in the domestic capital market. The Sukuk, which will be issued through Pakistan Domestic Sukuk Company Limited (PDSCL)—a wholly owned entity under the Ministry of Finance—is structured to raise Rs25 billion, with the issue date set for June 26, 2025, and maturity on June 26, 2035.
The instrument is based on the Islamic financial principle of Ijarah (sale and lease-back), and designed as a zero-coupon Sukuk. Rather than paying periodic returns, investors earn a profit through the difference between the discounted investment value and the face value, which will be paid in full upon maturity. This makes the Sukuk attractive to long-term investors looking for a stable, low-risk Shariah-compliant investment.
Participation begins from a minimum investment of Rs5,000 or in multiples thereof. The auction will use a single-price methodology, with bids submitted based on face value. The Ministry of Finance will determine the cut-off price, and only those bids meeting or exceeding it will be accepted. All successful bidders will receive allocations at the cut-off rate.
The profit—referred to as the Ijarah rental—will remain fixed for the entire 10-year period and is calculated as the difference between the face value and the amount paid at the time of investment. The Sukuk qualifies as 100% eligible for Statutory Liquidity Requirement (SLR), making it an attractive option for banks and financial institutions managing regulatory reserves.
Each unit of the Sukuk represents a pro-rata ownership in the underlying Ijarah assets. All rights, entitlements, and obligations are defined under a pre-approved transaction structure governed by Pakistani law and Shariah principles. The structure has been validated in line with the Government of Pakistan Sukuk Rules 2008 (amended 2023) and SRO 1585(I)/2023.
A wide pool of investors is eligible to participate. These include individuals, institutional investors, mutual and pension funds, commercial banks, NBFCs, insurers, Takaful companies, Roshan Digital Account holders, non-resident Pakistanis, and international Islamic financial institutions. All clearing members of the National Clearing Company of Pakistan Limited (NCCPL) may participate. Additionally, investors can submit Non-Competitive Bids (NCBs), which are capped at either 0.25% of the auction target or Rs500 million, whichever is lower.
The Sukuk issuance is supported by a consortium of leading Islamic financial institutions, acting jointly as Financial and Shariah Advisors. This consortium includes Meezan Bank, Dubai Islamic Bank Pakistan, Bank Islami, and Bank Alfalah. Legal counsel is being provided by Ahmed & Qazi Advocates. The NCCPL is serving as the paying agent, while the Central Depository Company (CDC) Share Registrar Services will manage the registrar and custodian responsibilities.
All Sukuk will be issued in book-entry form and maintained in the Central Depository System (CDS) of CDC. The full transaction structure, Shariah certification, and detailed risk disclosures are available for review by prospective investors and must be consulted before participation. The issuer has also pledged indemnification to financial advisors except in cases of proven gross negligence or misconduct.
Dispute resolution, if necessary, will be conducted either through mutual consent or adjudication in the courts of Pakistan, as per the governing legal framework.