The government raised Rs118.05 billion through the 32nd auction of Government of Pakistan Ijarah Sukuk (GIS), reflecting growing demand for Islamic financial instruments in the country.
The auction saw strong investor participation, with total bids reaching Rs445.49 billion, according to the Pakistan Stock Exchange. This significant oversubscription highlights sustained confidence in sovereign sukuk and the strong liquidity within the Islamic banking system.
Meezan Bank, acting as the lead joint financial adviser, played an important role in structuring and executing the transaction, ensuring that it adhered to Shariah principles while achieving successful market execution.
The issuance comes as Pakistan continues its transition toward a fully Islamic financial system following the 26th Constitutional Amendment, which mandates the elimination of Riba (interest). In this context, sukuk instruments are expected to play a key role in supporting the government’s financing needs through Shariah-compliant solutions.
The one-year sukuk was accepted at 11.49%, while the five-year fixed rental sukuk was priced at 11.75%, indicating strong participation across key tenors. The 10-year variable rental rate sukuk also attracted solid demand, reflecting a growing investor preference for flexible, floating-rate Shariah-compliant instruments.
Overall, the successful auction underscores the increasing importance of Islamic finance in Pakistan’s financial system and demonstrates the government’s ongoing efforts to diversify its funding sources through Shariah-compliant instruments.