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