PSX raises Rs76.3bn in 6th Hybrid Sukuk Auction

Karachi: Pakistan Stock Exchange Limited (PSX) successfully raised Rs76.286 billion for the Ministry of Finance through the 6th Auction of Government of Pakistan Hybrid Sukuk (GHS), reflecting continued investor appetite for Shariah-compliant government securities.

A private bank played a leading role in the transaction as Joint Financial Advisor, 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 auction 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 12.4880 percent, showing a decline of 1.32 basis points.

For the 10-year Variable Rental Rate Sukuk, the cut-off rental rate was recorded at 11.8569 percent, representing a spread of 0.4884 percent over the reference rate. The reference rate for the auction was 11.3685 percent.

The successful raising of over Rs76 billion through the PSX platform highlights the growing role of the capital market in government debt mobilization, particularly through Islamic finance instruments. It also reflects the increasing depth of Pakistan’s Sukuk market as institutional investors continue to participate in Shariah-compliant avenues for fixed income investment.

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.

The successful issuance also reflects the collaborative efforts of the Ministry of Finance, State Bank of Pakistan (SBP), and Pakistan Stock Exchange (PSX) in strengthening the domestic Sukuk market through regular sovereign Islamic issuances and facilitating wider investor participation in Shariah-compliant investment instruments.

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.