Islamabad: The Government of Pakistan has announced significant adjustments in its auction sizes for Hybrid Sukuk, as communicated by the Debt Management Office (DMO). This development, which was outlined in a notice from the Pakistan Stock Exchange (PSX) dated November 10, 2026, reflects a strategic shift in the nation's approach to managing its domestic debt obligations.
According to the revised auction calendar, the target sizes for the 3 and 6 Month Fixed Rate Discounted Government of Pakistan (GoP) Hybrid Sukuk have been increased from PKR 25 billion to PKR 50 billion each. Conversely, the target size for the 10-Year Variable Rental Rate GoP Hybrid Sukuk has been reduced significantly from PKR 150 billion to PKR 100 billion. These changes are part of an updated strategy to optimize debt management, taking into account current economic conditions.
The auction adjustments are part of a broader framework involving the issuance of Shariah-compliant financial instruments. The Pakistan Domestic Sukuk Company Limited (PDSCL), a wholly-owned subsidiary of the Ministry of Finance, is spearheading this initiative. The short-term hybrid Sukuk, with revised target sizes, are set for issuance on November 12, 2026, with maturity dates on February 4, 2027, and May 13, 2027, respectively. In contrast, the 10-year Sukuk will be re-opened on November 12, 2026, and will mature on October 15, 2036.
According to information available from the Pakistan Stock Exchange (PSX), the non-competitive per investor maximum limit has been revised in the PSX Auction System to accommodate these changes, ensuring a streamlined and efficient bidding process for market participants. The Sukuk are structured as a combination of Ijarah Sale and Lease Back (Ijarah SLB) transactions and Commodity Murabaha transactions, with 55% of proceeds allocated to the former and 45% to the latter.
The face value for each Sukuk remains at PKR 5,000, with bid prices calculated per PKR 100. A notable feature in the revised terms is the introduction of a price premium—PKR 46.4796 per PKR 5,000 face value—applied to ensure equitable returns among investors purchasing the Sukuk at different times.
These adjustments are part of the government's broader strategy to manage its fiscal responsibilities while adhering to Shariah-compliant financing structures. The revised auction sizes and terms reflect an adaptive approach to current market dynamics, ensuring that Pakistan's financial instruments remain attractive to both domestic and international investors.