Karachi: The Government of Pakistan's Ijarah Sukuk auction, conducted through the Pakistan Stock Exchange (PSX) Auction System on May 29, 2025, concluded with the acceptance of bids totaling 36.91 million for the 1-Year Discounted Ijarah Sukuk. This auction aimed to meet a pre-auction target set at 40 billion.

The auction results, which were disseminated in the form of annexures, detailed the offerings across different tenors. These included the 1-Year Discounted Ijarah Sukuk, along with fixed and variable rental rate Sukuks for 3, 5, and 10-year terms. The auction settlement is scheduled for May 30, 2025, aligning with the issue date.

According to information available from the Pakistan Stock Exchange (PSX), the 1-Year Discounted Ijarah Sukuk saw substantial interest. The face value of bids received amounted to 110,555.17 million, with realized amounts reaching 100,175.05 million. The accepted competitive bids for this tenor comprised a face value of 38,834.00 million, translating into a realized amount of 35,232.57 million. Non-competitive bids added a face value of 1.84 million, contributing a realized amount of 1.67 million.

Overall, the total acceptance for the 1-Year Discounted Ijarah Sukuk stood at 40,677.90 million in face value, with a realized amount of 36,905.47 million. The cut-off rental rate was established at 10.2499%, with a cut-off price of 90.7261 applicable to all accepted bids.

This auction forms part of the government's strategy to raise funds through Shariah-compliant instruments, providing investors with an alternative investment vehicle while meeting the nation's financial requirements.