KARACHI: Gross sukuk issuance reached a record Rs3.5 trillion in FY26, delivered through a hybrid structure and supported by a retail push.
This was shared during the investor briefing session at the Pakistan Stock Exchange (PSX) on Friday.
The session brought together senior representatives from the Ministry of Finance, PSX leadership, asset managers, banks, brokers, and other stakeholders to discuss debt management strategy, sukuk issuance, secondary market development, and fiscal reforms.
Khaliq Uz Zaman, Director, Domestic Debt, said the average time to maturity had increased to 3.9 years, close to the four-year target, while the average time to refixing had improved to 1.3 years.
“Weighted average cost of borrowing was contained at 11.2 per cent, even below the policy rate, reflecting cost optimisation,” he said.
“Conventional securities recorded steady growth of 25pc year-on-year while sukuk trading through PSX surged by 275pc,” he said.
Looking ahead, he said the first short-term sukuk programme — targeting Rs400-500bn across three- and six-month tenors — will complete the sovereign sukuk curve, broaden the investor base, and strengthen the savings economy.
Khurram Shehzad, adviser to the finance minister, the debt-to-GDP ratio has improved from 75.2pc in 2023 to 68.5pc, and early retirements of expensive debt totalled Rs4.7tr over the past two years, including Rs2.2tr this year alone, he said.
“Debt growth has slowed to just 5pc, the lowest in 15 years, compared to an average of 12pc previously,” he said. Debt servicing costs have also improved, with the share of revenue spent on debt falling from 61pc to 40pc, he added.
Omer Khan, adviser on debt to the finance minister, said that debt sustainability is the central focus of Pakistan’s strategy.
On the external side, Roshan Digital Account inflows have risen by $300 million per month, reflecting a stronger response from overseas investors.
PSX Managing Director and Chief Executive Farrukh H. Sabzwari said that the PSX continues its journey as a critical institutional partner to the government in debt issuance, with the successful inaugural GoP hybrid sukuk issuance.
He said that the overall issuance through the capital market has now reached Rs6.4tr. Average daily trading volume has risen to Rs3.9bn from Rs2bn.
Published in Dawn, July 11th, 2026