Pakistan raised more than Rs2 trillion through domestic Sukuk issuances in 2025, the highest annual volume since Islamic bonds were introduced in 2008, according to Finance Minister’s advisor Khurram Schehzad.
Schehzad said the issuances were carried out by the Ministry of Finance, through its Debt Management Office, in coordination with Joint Financial Advisors.
A total of 61 Sukuk were issued during the year across one year, three year, five year and ten year tenors, under Fixed Rental Rate and Variable Rental Rate structures.
The issuance increased the share of Islamic instruments in the government’s domestic debt portfolio from 12.6 percent in June 2025 to around 14.5 percent by December 2025, placing the government on track to meet its 20 percent Shariah compliant debt target by FY28, Schehzad said.
He said the development reflects growing investor confidence, deeper Islamic capital markets, and improvements in sovereign debt management, supporting macroeconomic stability and fiscal sustainability.
Pakistan has also expanded into Green Sukuk. In May 2025, the government launched its first Sovereign Domestic Green Sukuk worth Rs30 billion at the Pakistan Stock Exchange, raising the share of Shariah compliant financing in total domestic debt to 14 percent, then Finance Minister Muhammad Aurangzeb said.
