Karachi: In a significant development for the financial markets in Pakistan, the 12th Government of Pakistan (GoP) Hybrid Sukuk (GHS) auction is set to take place on Wednesday, July 22, 2026, facilitated through the Pakistan Stock Exchange (PSX) Auction System. This auction is part of a revised auction calendar as per PSX Notice# PSX/N-885 dated July 15, 2026, which encompasses both the GoP Hybrid Sukuk (GHS) and GoP Ijarah Sukuk (GIS).
According to information available from the Pakistan Stock Exchange (PSX), the Hybrid Sukuk structure will integrate an Ijarah Sale & Lease Back (Ijarah SLB) transaction and a Commodity Murabaha transaction. The allocation of proceeds is structured with 55% directed towards Ijarah SLB and 45% towards Commodity Murabaha. The auction will employ a Non-Uniform Pricing mechanism, which is a Multiple Prices or Pay-as-Bid approach.
Eligible participants include all Broker Clearing Members (BCMs), Non-Broker Clearing Members (NBCMs), and Professional Clearing Members (PCM) of the National Clearing Company of Pakistan Limited (NCCPL). These participants can engage in the auction for their proprietary accounts, investors, and funds under management.
Notably, the auction introduces short-term Sukuk instruments with tenors of 3 months and 6 months, marking a significant addition to the scheduled auction. The mechanism for the VRR-Fresh Auction has undergone changes, with bids now required to be placed based on price up to four decimal places, a shift from the previously used spread (bps).
The Ministry of Finance has provided the coupon rate for the VRR-Fresh instruments in advance, which will be applicable for the initial six-month period. For competitive bidders, allocations will be made based on their respective bid prices, while non-competitive bidders will receive allocations based on the Weighted Average Yield percentage.
Participants are expected to adhere to the operational modalities consistent with previous auctions and utilize existing credentials for investor mapping, cash assignment, and bidding. Any amendments to the Participant Admin User details must be communicated to PSX/NCCPL through designated email addresses.
The auction day will see competitive and non-competitive bidding for all instruments, with the final collection of settlement amounts scheduled for Thursday, July 23, 2026. This auction represents a critical opportunity for market participants within the designated market category to engage with the innovative Hybrid Sukuk instruments offered by the Government of Pakistan.