Karachi: The Debt Management Office (DMO) of the Ministry of Finance, in collaboration with key financial institutions, is set to introduce Short-Term Government of Pakistan (GoP) Sukuk with tenors of 3 months and 6 months. The inaugural issuance, slated for Wednesday, July 22, 2026, marks a significant development in Pakistan's Islamic capital market.
The initiative is a joint effort with Meezan Bank, BankIslami Pakistan, Dubai Islamic Bank, and Bank ALFalah serving as Joint Financial Advisors. Other collaborators include the State Bank of Pakistan (SBP), Securities & Exchange Commission of Pakistan (SECP), and Capital Market Infrastructure Institutions (CMIIs), Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL), and Central Depository Company of Pakistan Limited (CDC).
According to information available from the Pakistan Stock Exchange (PSX), the Short-Term Sukuk aims to offer Islamic investment opportunities, broadening the scope for investors seeking Shariah-compliant financial products. This move is also part of broader efforts to enhance the liquidity and vibrancy of the Islamic capital market in the country.
In an additional development, the DMO has announced a change in the auction allocation methodology for GoP Sukuk. The previous Uniform Pricing (Single Cut-off Rate) mechanism will be replaced by a Non-Uniform Pricing (Multiple Prices/Pay-as-Bid) mechanism. Under the revised system, successful Competitive Bidders will receive allocations based on their Accepted Bid Rates, while Non-Competitive Bidders will be allocated at the Weighted Average Yield.
This updated allocation mechanism applies to all GoP Sukuk types issued through PSX, including the Fixed Rate Discounted (FRD) or Short Term GoP Sukuk, Fixed Rental Rate (FRR) - Fresh & Re-openings, Variable Rental Rate (VRR) - Fresh & Re-openings, and Fixed Rate Zero Coupon (FRZ) - Fresh & Re-openings.
The DMO expressed optimism about the upcoming Sukuk issuance and the revised allocation mechanism, anticipating strong support and cooperation from all market participants to ensure the success of this primary issuance.