Karachi: In the recent primary market auction for the issuance of Government of Pakistan Hybrid Sukuk (GHS) and Government of Pakistan Ijarah Sukuk (GIS), conducted on April 28, 2026, all competitive and non-competitive bids were rejected. This development, which took place through the Pakistan Stock Exchange Auction System, has left market participants without any accepted bids for this issuance.

The auction aimed to issue 3-Year and 5-Year Fixed Rental Rate GoP Hybrid Sukuk as well as a 10-Year Fixed Rate Zero Coupon GoP Ijarah Sukuk, which was in its third reopening since the initial issuance. However, despite the received bids, none met the required cut-off criteria for acceptance.

The auction details show that for the 10-Year Fixed Rate Zero Coupon GoP Ijarah Sukuk, which has a maturity date set for January 22, 2036, bids amounting to a face value of 1,900 million were submitted, with 625.001 million realized. Nonetheless, these bids were ultimately dismissed, with both competitive and non-competitive segments seeing all bids rejected.

Similarly, the auction for the 3-Year and 5-Year Fixed Rental Rate GoP Hybrid Sukuk, set to mature on April 29, 2029, and April 29, 2031, respectively, also witnessed all bids being turned down. The face values for these Sukuk were significantly high, with the 3-Year Sukuk at 37,901.90 million and the 5-Year Sukuk at 50,580.00 million, according to the bid summary. However, the total realized amounts matched the face values, indicating full participation, yet no bids were accepted in both competitive and non-competitive segments.

According to information available from the Pakistan Stock Exchange (PSX), this rejection of bids across the board suggests a strict adherence to fiscal benchmarks and yields that were not met by the submitted offers. As a result, the total acceptance amount for all tenors was recorded as zero, marking a significant outcome in this auction cycle.

The results of this auction are crucial for market participants, as they reflect the prevailing investor sentiment and the government’s stance on acceptable yield levels for these Shariah-compliant financial instruments. The market will be closely watching subsequent auctions to gauge any shifts in strategy or acceptance criteria.