Karachi: The Government of Pakistan successfully conducted a primary market auction for its Hybrid Sukuk (GHS) on October 28, 2026, through the Pakistan Stock Exchange (PSX) Auction System, securing substantial investor interest across various tenors.
In the GHS-FRD auction category, the total face value of bids received amounted to 348.13 billion Pakistani Rupees, with a realized amount of 328.42 billion PKR. The auction targeted an initial pre-auction goal of 150 billion PKR. Accepted bids in this category totaled 267.79 billion PKR in face value, with a realized amount of 253.92 billion PKR. The 3-month, 6-month, and 1-year fixed-rate discounted fresh tenors witnessed considerable investor participation.
The 3-month tenor, maturing on January 21, 2027, saw competitive bids with a face value of 188.28 billion PKR and a realized amount of 183.18 billion PKR, cut-off priced at 97.2364 per 100 PKR, yielding a 12.3498% rate. The 6-month tenor, maturing on April 29, 2027, attracted bids with a face value of 2.72 billion PKR, realizing 2.56 billion PKR, at a cut-off price of 94.1776, resulting in a 12.3987% yield. The 1-year tenor, due on October 28, 2027, accepted bids with a face value of 76.79 billion PKR and realized 68.18 billion PKR, featuring a cut-off price of 88.6052 and yielding 12.8955%.
According to information available from the Pakistan Stock Exchange (PSX), the auction for the GHS-VRR category aimed for a pre-auction target of 200 billion PKR. The auction featured a 10-year variable rental rate tenor maturing on October 15, 2036, with a reference rate of 12.1179%. The face value of bids amounted to 649.25 billion PKR, with a realized amount of 636.04 billion PKR. Out of these, competitive bids with a face value of 213.07 billion PKR were accepted, realizing 210.82 billion PKR with a price premium of 990.34 million PKR. The cut-off yield in this category was noted at 12.4104%.
The auction results indicate strong investor confidence and robust participation, with the government successfully surpassing its pre-auction targets across both categories. This significant move in the financial markets underscores the demand for government-backed securities amidst the prevailing economic conditions.