Karachi: The Pakistan Stock Exchange (PSX) has announced the upcoming auctions for the 23rd Government of Pakistan (GoP) Hybrid Sukuk and the 40th GoP Ijarah Sukuk, set to take place on Wednesday, November 4, 2026. The auctions will be conducted through the PSX Auction System, targeting a total of PKR 125 billion for various tenors.
The auction will offer 3-year and 5-year Fixed Rental Rate (FRR) Hybrid Sukuk, alongside a 10-year Fixed Rate Zero Coupon Ijarah Sukuk. The Hybrid Sukuk structure incorporates an Ijarah Sale & Lease Back (Ijarah SLB) transaction, with 55% of proceeds directed towards Ijarah SLB and 45% to a Commodity Murabaha transaction. The designated market category for these transactions is debt instruments.
According to information available from the Pakistan Stock Exchange (PSX), the auction will employ a Non-Uniform Pricing mechanism, allowing bids up to four decimal places. This adjustment from the previous yield-based system reflects the ongoing efforts to streamline bidding processes. The Ministry of Finance has provided the coupon rate for FRR-Fresh instruments in advance, applicable throughout the life of the Sukuk.
Eligible participants include Broker Clearing Members (BCMs), Non-Broker Clearing Members (NBCMs), and Professional Clearing Members (PCMs) of the National Clearing Company of Pakistan Limited (NCCPL). These participants can engage in the auction for proprietary accounts, investors, and managed funds. Participants must submit a 10% advance committed amount for each instrument and notify PSX/NCCPL via email.
The auction aims to raise PKR 50 billion each for the 3-year and 5-year GHS FRR instruments and PKR 25 billion for the 10-year GIS-FRZ instrument. The minimum bid size is set at Rs. 5,000, with no maximum limit for competitive bids. However, non-competitive bids are capped at 0.25% of the pre-auction target amount or Rs. 500 million, whichever is lower.
The auction system is accessible through the PSX Debt Market link and will operate from 10:00 a.m. to 12:00 p.m. on the designated date. Settlement for the auction is scheduled for Thursday, November 5, 2026.
Participants are advised to ensure the correct mapping of instruments before the auction begins and to register new investors according to established procedures. The auction system integrates with the Central Depository System (CDS) for validation of investor details.
This auction presents an opportunity for existing and new investors, including Roshan Digital Account holders, to participate in Pakistan's growing debt market.