KARACHI: The Pakistan Stock Exchange (PSX) successfully raised Rs76.286 billion for the Ministry of Finance through the sixth auction of Government of Pakistan Hybrid Sukuk (GHS), reflecting continued investor appetite for Sharia-compliant government securities, a statement said on Thursday.
The auction, which was held on Wednesday, attracted strong participation, with total bids received amounting to Rs262.197 billion in face value, while the total realized value of bids stood at Rs254.593 billion.
According to the auction results, the cut-off rate for the one-year fixed-rate discounted sukuk was set at 12.488 per cent, showing a decline of 1.32 basis points (bps).
For the 10-year variable rental rate sukuk, the cut-off rental rate was recorded at 11.8569 per cent, representing a spread of 0.4884 per cent over the reference rate. The reference rate for the auction was 11.3685 per cent. The successful raising of over Rs76 billion through the PSX platform highlights the growing role of the capital market in government debt mobilisation, particularly through Islamic finance instruments. It also reflects the increasing depth of Pakistan’s sukuk market as institutional investors continue to participate in Sharia-compliant avenues for fixed income investment.
Meezan Bank played a leading role in the transaction as joint financial adviser, contributing towards the structuring, development and successful execution of the sukuk programme, further reinforcing its position as a key player in Pakistan’s Islamic capital markets landscape.
The Government of Pakistan Hybrid Sukuk programme has become an important instrument for broadening the investor base, supporting Islamic banking liquidity management, and providing the government with an alternative funding channel through the capital market.
Market participants said the strong bidding response indicates continued demand for sovereign-backed Islamic instruments, especially at a time when banks, mutual funds, and other institutional investors are actively seeking compliant investment options with government credit exposure.
