Pakistan Raises Rs239 Billion in Debut Short-Term Hybrid Sukuk Sale

Pakistan extended its months-old hybrid sukuk program to short-dated tenors for the first time on Wednesday, with the Pakistan Stock Exchange raising Rs239.325 billion for the Ministry of Finance in the debut auction of the Short-Term Government of Pakistan Hybrid Sukuk, according to Business Recorder.

Pakistan raised Rs239.325 billion in the July 22, 2026, inaugural auction of its Short-Term Government of Pakistan Hybrid Sukuk, according to Business Recorder. The sale priced new three-month and six-month discounted tenors and came in just below the government’s Rs250 billion target, per Profit by Pakistan Today.

The exchange drew bids worth Rs770.234 billion in face value, equivalent to a realized value of Rs741.287 billion, Business Recorder reported. The cut-off yield for the three-month discounted sukuk settled at 11.4994%, while the six-month tranche priced at 11.6902%, according to Business Recorder. Market participants attributed the strong bidding to improving liquidity conditions and sustained institutional appetite for Shariah-compliant sovereign paper, per Business Recorder.

Bids Clear Rs770 Billion, Raised Amount Falls Just Short of Target

Ahead of the sale, the government had set a target of Rs250 billion for the short-term hybrid sukuk offering, according to Profit by Pakistan Today. The Rs239.325 billion ultimately raised landed just below that mark, even though total bids of Rs770.234 billion cleared the target more than three times over, Business Recorder reported.

A Young Program Reaches the Short End of the Curve

Pakistan launched its first-ever Government Hybrid Sukuk on April 16, 2026, raising Rs109.297 billion against a Rs200 billion target, according to Mettis Global. That debut instrument combined 55% Ijarah Sale and Lease Back with 45% Commodity Murabaha, split between a one-year fixed-rate tranche at a cut-off rental rate of 11.8000% and a ten-year variable-rate tranche at 11.7185%, per Mettis Global. Arab News reported the April issuance internationally as worth roughly $390 million, and the transaction was led by the Debt Management Office, the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan, with Meezan Bank, Bank Alfalah, Dubai Islamic Bank and BankIslami Pakistan serving as financial advisers, according to Mettis Global.

The hybrid structure, which blends fixed and floating-rate features, is meant to broaden the government’s Shariah-compliant borrowing base, according to Business Recorder. Pakistan has tapped Islamic finance for state funding before, including infrastructure deals. Wednesday’s auction didn’t repeat that one-year and ten-year format; it introduced discounted three-month and six-month tenors instead, giving the program its first genuinely short-dated instrument.

Reopenings Since the April Debut

The government continued reopening the hybrid sukuk through the PSX in the months after April, including a sixth auction on May 21, 2026, that raised Rs76.29 billion, according to Profit by Pakistan Today. Officials later raised the reopening target for the program to Rs200 billion, Mettis Global reported. Wednesday’s sale was the first to use discounted short-term pricing rather than the fixed or variable rental rates seen in the earlier tenors.

Rs1.7 Trillion Pipeline Ahead

Officials have signaled plans to raise as much as Rs1.7 trillion through PSX sukuk auctions over the coming three months, Mettis Global reported. The short-dated tenors give the Ministry of Finance a Shariah-compliant tool for managing cash flow at the short end of the yield curve, complementing the one-year and ten-year tranches introduced in April. It isn’t the first time a sovereign has tested a new corner of the sukuk toolkit this year: the UAE debuted its first retail sukuk through Abu Dhabi Islamic Bank in a similar push to widen its Islamic capital market. Whether Pakistan’s Rs1.7 trillion sukuk pipeline holds to that pace over the next three months will be the next marker to watch.

Frequently Asked Questions

How much did Pakistan raise in its inaugural short-term hybrid sukuk auction?

Pakistan raised Rs239.325 billion in the July 22, 2026, auction, according to Business Recorder, against a government target of Rs250 billion reported by Profit by Pakistan Today.

What is Pakistan’s Government Hybrid Sukuk?

It is a Shariah-compliant sovereign instrument combining fixed and floating-rate features, first launched on April 16, 2026, in one-year and ten-year tenors before being extended to three-month and six-month short-dated tenors on July 22, 2026, per Mettis Global.

What yields did the short-term hybrid sukuk pay?

The cut-off yield was 11.4994% on the three-month discounted tranche and 11.6902% on the six-month tranche, according to Business Recorder.

How does the short-term sukuk differ from Pakistan’s April 2026 hybrid sukuk debut?

The April debut raised Rs109.297 billion in one-year and ten-year tenors using a mix of Ijarah Sale and Lease Back and Commodity Murabaha structures, according to Mettis Global, while the July auction introduced discounted three-month and six-month tenors for the first time.

How much more does Pakistan plan to raise through sukuk auctions this year?

Officials have signaled plans to raise as much as Rs1.7 trillion through Pakistan Stock Exchange sukuk auctions over the coming three months, Mettis Global reported.