Karachi: In a recent development, the Government of Pakistan successfully conducted an auction for its Hybrid Sukuk (GHS) through the Pakistan Stock Exchange (PSX) Auction System on May 20, 2026. The auction consisted of two key instruments, namely the 1-Year Fixed Rate Discounted Sukuk and the 10-Year Variable Rental Rate (VRR) Sukuk, with the results indicating significant investor interest.

According to the auction details, the 1-Year Fixed Rate Discounted GoP Hybrid Sukuk, set to mature on May 20, 2027, received a total face value of 1,877.505 million PKR from competitive and non-competitive bids. The realized amount stood at 1,669.579 million PKR with a cut-off rental rate of 12.4880%.

Meanwhile, the 10-Year Variable Rental Rate GoP Hybrid Sukuk, in its third re-opening, was issued on April 16, 2026. This instrument attracted bids totaling a face value of 210.265 billion PKR. Out of this, the competitive bidding process accepted 74.265 billion PKR, with the realized amount reaching 73.456 billion PKR and a price premium of 834.510 million PKR, culminating in a total realized amount of 74.490 billion PKR. For non-competitive bids, a face value of 126.400 million PKR was realized, amounting to 124.966 million PKR with a premium of 1.416 million PKR, resulting in a total of 126.361 million PKR.

According to information available from the Pakistan Stock Exchange (PSX), the total acceptance for the 10-Year Variable Rental Rate Sukuk amounted to a face value of 74.391 billion PKR, with a realized amount of 73.789 billion PKR and a price premium of 835.926 million PKR, leading to a total of 74.617 billion PKR. The cut-off margin was settled at 99.1795.

This auction outcome underscores a robust appetite for government-backed Islamic financial instruments, with substantial sums being realized in both fixed-rate and variable-rate categories.