Karachi: In a significant update for market participants, the Pakistan Stock Exchange (PSX) has announced revisions to the auction size for the Government of Pakistan (GoP) Hybrid Sukuk, adjusting the target from PKR 100 billion to PKR 25 billion. This change, advised by the Debt Management Office, was communicated through PSX Notice# PSX/N-1121 on September 11, 2026.

The modification affects the primary market auction schedule for the 10-year Variable Rental Rate GoP Hybrid Sukuk. The revised term sheet, referenced as Annexure "C", is attached for detailed information. Additionally, the non-competitive per investor maximum limit has been updated in the PSX Auction System to reflect the new target size.

According to information available from the Pakistan Stock Exchange (PSX), the revised auction maintains the original details outlined in PSX Notice# PSX/N-1107 dated September 09, 2026, except for the change in target size. The Hybrid Sukuk is issued by the Pakistan Domestic Sukuk Company Limited, a subsidiary of the Ministry of Finance.

The Sukuk, with an issue date of July 23, 2026, and a maturity date set for July 23, 2036, will be reopened for auction on September 17, 2026. The transaction structure involves a mix of Ijarah Sale and Lease Back (Ijarah SLB) and Commodity Murabaha transactions, with 55% of proceeds directed to the former and 45% to the latter.

Each Sukuk has a face value of PKR 5,000, and bids can be placed in multiples of this amount. The auction will determine the cut-off price, with all bids above this price being accepted by the Ministry of Finance. The weighted average price and yield will be calculated from accepted bids, and a price premium of PKR 87.3784 per PKR 5,000 face value is applicable.

Market participants are advised to review the revised auction details and prepare accordingly for the upcoming auction date.