Karachi: The Government of Pakistan’s recent auction for Ijarah Sukuk, held on January 21, 2026, through the Pakistan Stock Exchange Auction System, concluded with varied outcomes across different maturity tenors. The auction, which aimed to raise funds through Islamic financial instruments, featured a mix of tenors including 1-year, 3-year, 5-year, and 10-year bonds in both fixed and variable rental rates.
According to the auction results, the 1-year discounted Ijarah Sukuk received bids amounting to 167,828.190 PSI million in face value, with a realization of 153.18 million. The accepted bids totaled a face value of 62,715.590 million, realizing an amount of 57.33 million with a cut-off rental rate of 9.4639%. The auction targeted a pre-auction amount of 100 billion rupees. The 1-year segment displayed a significant move with a realized amount reflecting a strong demand from participants.
In the 3-year and 5-year fixed rental rate categories, a total of 321,212.000 PSI million in bids was received. The 3-year Ijarah Sukuk saw an acceptance of 50,807.180 million in face value, realizing the same amount, with a cut-off rental rate of 9.6300%. Meanwhile, the 5-year Sukuk accepted bids worth 89,030.930 million, displaying a stable interest from investors.
The 10-year zero-coupon Sukuk, a fresh issuance, attracted bids worth 122,800.000 PSI million, with accepted bids amounting to 147,582.040 million face value. The realized amount for accepted bids stood at 52.49 million, with a cut-off rental rate of 10.8900%. According to information available from the Pakistan Stock Exchange (PSX), this issuance categorized as a very large move, indicating substantial interest in long-term investment.
For the 10-year variable rental rate Sukuk, the bids received amounted to 345,150.000 PSI million in face value, with an acceptance of 35,041.505 million. The net rental rate was determined at 9.5217%. This segment also illustrated a very large move, showcasing the investors’ preference towards variable income instruments in a volatile interest rate environment.
Overall, the auction results reflect a mixed response with significant moves in the long-term tenors, underscoring investor sentiment and strategic positioning in Pakistan’s financial markets. The auction’s outcome provides crucial insights into the government’s debt strategy and the market’s appetite for Sharia-compliant financial products.