Govt raises Rs118bn via sukuk auction

Published
A file photo of Pakistani banknotes. — AFP/File
A file photo of Pakistani banknotes. — AFP/File

KARACHI: The government on Wednesday raised Rs118.05 billion in the 32nd auction of Islamic Bonds Ijarah Sukuk (GIS), reflecting increasing demand for Islamic finance.

Meezan Bank, as the lead joint financial adviser, played a pivotal role in structuring and executing the transaction.

According to the Pakistan Stock Exchange, the auction attracted strong investor participation, with total bids amounting to Rs445.49bn. The robust demand highlights sustained confidence in sovereign sukuk and the depth of liquidity within the Islamic banking system.

Pakistan is moving towards a fully Islamic financial system following the 26th Constitutional Amendment, which mandates the elimination of Riba (interest). In this context, government borrowing remains a critical challenge, and sukuk instruments are expected to play a central role in enabling Shariah-compliant sovereign financing.

The one-year sukuk was accepted at 11.49pc, while the five-year fixed rental sukuk was accepted at 11.75pc, demonstrating active participation in key segments. The 10-year variable rental rate sukuk saw strong demand, signalling a growing preference for flexible, floating-rate Shariah-compliant instruments.

Published in Dawn, March 26th, 2026

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Banking inertia
Updated 13 Jul, 2026

Banking inertia

PRIME Minister Shehbaz Sharif’s latest call to banks to expand lending to SMEs is nothing new. Every government...
Justice imperilled
13 Jul, 2026

Justice imperilled

THE Human Rights Commission of Pakistan and the International Federation for Human Rights have raised concerns about...
Toxic staple
13 Jul, 2026

Toxic staple

A RECENT article published in Dawn has shed light on the challenges being faced by Sindh’s chilli farmers, whose...
Mixed messaging
Updated 12 Jul, 2026

Mixed messaging

In case the parleys fail, a return to full-scale war would be the likely outcome.
Way forward
12 Jul, 2026

Way forward

A GROUP of estranged PTI leaders, calling themselves the ‘National Dialogue Committee’ and led by figures like...
Recalled orders
12 Jul, 2026

Recalled orders

WHILE justice should be blind, it should not be oblivious to the human suffering some decisions may cause. This is...