The Government of Pakistan has raised Rs. 69.955 billion in face value through its latest Government of Pakistan Hybrid Sukuk (GHS) auction conducted on the Pakistan Stock Exchange (PSX). The amount remained significantly below the combined pre-auction target of Rs. 250 billion, highlighting a shortfall in the government’s latest Islamic financing exercise.
The auction took place on November 11, 2026, through the PSX Auction System, while the settlement was scheduled for November 12. The government offered multiple Sukuk instruments to attract investment from market participants and raise funds through Shariah-compliant financing.
The latest auction included fresh issuances of three-month, six-month and one-year Fixed Rate Discounted Hybrid Sukuk. It also featured the second reopening of a 10-year Variable Rental Rate (VRR) Hybrid Sukuk, which was originally issued on October 15, 2026.
The combined pre-auction target for the exercise stood at Rs. 250 billion. However, the government accepted bids amounting to Rs. 69.955 billion in face value, leaving a substantial gap between the targeted amount and the funds raised.
Fresh Issuance of Fixed Rate Discounted Sukuk
According to Annexure A of the PSX auction results, the government invited bids for three-month, six-month and one-year Fixed Rate Discounted Hybrid Sukuk. The pre-auction target for these fresh issuances was set at Rs. 150 billion.
These short-term and medium-term instruments are designed to provide investors with Shariah-compliant investment opportunities while allowing the government to secure financing through the domestic capital market.
Fixed Rate Discounted Sukuk are structured around predetermined returns and are issued at a discount to their face value. Investors receive the applicable redemption amount upon maturity, in accordance with the instrument’s terms.
The auction also included the reopening of the existing 10-year Variable Rental Rate Hybrid Sukuk. This instrument was initially issued on October 15, 2026, and the November 11 exercise marked its second reopening.
Unlike fixed-rate instruments, Variable Rental Rate Sukuk have rental payments linked to an applicable benchmark or pricing mechanism under their issuance terms. Such instruments provide another financing option within Pakistan’s Islamic capital market.
The difference between the government’s Rs. 250 billion combined target and the accepted amount of Rs. 69.955 billion represents a shortfall of approximately Rs. 180.045 billion.
The auction results are relevant to Pakistan’s debt management strategy and the development of its Islamic financial market. Government Sukuk provide an alternative to conventional debt instruments and allow investors seeking Shariah-compliant opportunities to participate in government financing.
The latest results also highlight the importance of investor participation in determining the amount raised through capital market auctions. Demand for different Sukuk tenors, pricing expectations and prevailing market conditions can influence the outcome of such financing exercises.
Pakistan continues to use Islamic financial instruments as part of its broader domestic borrowing strategy. The latest PSX auction provides another indication of the government’s efforts to mobilise funds through Shariah-compliant securities while engaging investors in the country’s capital market.