Karachi: The Pakistan Stock Exchange (PSX) is set to conduct the 24th auction of the Government of Pakistan’s Hybrid Sukuk (GHS) on November 11, 2026. This auction, employing a hybrid structure, combines Ijarah Sale & Lease Back (Ijarah SLB) and Commodity Murabaha transactions. The proceeds from the Sukuk will be allocated with 55% going towards Ijarah SLB and 45% towards Commodity Murabaha.

According to the details provided in PSX Notice# PSX/N-1232, dated October 9, 2026, the auction will utilize the PSX Auction System. Eligible participants include all Broker Clearing Members (BCMs), Non-Broker Clearing Members (NBCMs), and Professional Clearing Members (PCMs) of the National Clearing Company of Pakistan Limited (NCCPL). They are invited to partake in the auction for their proprietary accounts, investors, and funds under management.

The Pakistan Domestic Sukuk Company Limited, a subsidiary of the Ministry of Finance, is targeting a capital injection of PKR 25 billion for each of the 3-month and 6-month Fixed Rate Return (FRR) Sukuk. The issuance is scheduled for November 12, 2026, with maturity dates set for February 4, 2027, for the 3-month Sukuk, and May 13, 2027, for the 6-month Sukuk. Both maturities are subject to extensions should they coincide with public holidays.

The Sukuk, which are tradable on the PSX, are Shariah-compliant instruments that represent an undivided share in a pool of assets comprising Ijarah Asset and Commodity Murabaha receivables. The issuance will be at a discount from the face value, with the annual profit amount driven by the Ijarah SLB and Commodity Murabaha transactions. This amount is fixed for the duration of the Sukuk and payable upon maturity.

Significantly, the auction will follow a "pay as you bid" methodology, with all bids meeting or exceeding the cut-off price deemed successful. The transaction's structure and Shariah compliance aspects have been overseen by the Joint Financial Advisors, including Meezan Bank Limited, Dubai Islamic Bank (Pakistan) Limited, Bank Islami Pakistan Limited, and Bank Alfalah Limited.

According to information available from the Pakistan Stock Exchange (PSX), the auction allows for non-competitive bids (NCBs), with each investor restricted to an aggregate face value not exceeding 0.25% of the auction target or PKR 500 million, whichever is lower. All NCBs will be successful provided the Ministry of Finance sets a cut-off price.

The Sukuk issuance is a part of a broader strategy under the Government of Pakistan Sukuk Rules 2008, amended in 2023, ensuring compliance with Shariah guidelines. It features a comprehensive transaction structure, with NCCPL acting as the paying agent and Central Depository Company (CDC) as the registrar.

The legal framework governing these Sukuk is rooted in the laws of Pakistan, with the Ministry of Finance retaining the right to reject any bids without providing a reason. Investors are encouraged to thoroughly examine the term sheet and related documents to understand the risks involved before making investment decisions.