Pakistan raises Rs118 billion in 32nd Sukuk auction amid strong investor demand

The government on Wednesday raised Rs118.05 billion in the 32nd Government of Pakistan Ijarah Sukuk (GIS) auction, according to the Pakistan Stock Exchange. Total bids reached Rs445.49 billion, underscoring strong investor demand and liquidity in the Islamic banking sector.

Meezan Bank served as lead joint financial adviser, overseeing structuring and execution of the auction.

Accepted rates included 11.49% for the one-year sukuk, 11.75% for the five-year fixed rental sukuk, and strong demand for the 10-year variable rental rate sukuk, indicating rising interest in floating-rate Shariah-compliant instruments.

The auction aligns with Pakistan’s push toward a fully Islamic financial system following the 26th Constitutional Amendment, which mandates elimination of interest (Riba). Sukuk instruments are expected to support Shariah-compliant government borrowing amid ongoing fiscal challenges.