Pakistan’s Government Sukuk Portfolio Crosses Rs10 Trillion Milestone

Pakistan’s Government of Pakistan (GOP) Sukuk portfolio has crossed the Rs10 trillion mark in both outstanding value and cumulative issuances in 2026, marking a significant development in the country’s Islamic capital market.

Meezan Bank commemorated the milestone at a gathering in Islamabad. Representatives from the Ministry of Finance, the State Bank of Pakistan (SBP) and fellow joint financial advisers attended the event.

The participating financial institutions included Dubai Islamic Bank (Pakistan) Limited, BankIslami Pakistan Limited and Bank Alfalah Limited. They have contributed to the development of Pakistan’s Islamic capital market.

Sukuk Issuances More Than Double

The Government of Pakistan issued Sukuk worth Rs4.179 trillion between January and October 31, 2026. This figure is more than double the record Rs2.052 trillion issued during the whole of 2025.

New issuance structures, regulatory facilitation and wider participation by financial institutions have supported this expansion.

Since 2008, the government has mainly issued Sukuk under the Ijarah structure. This model links issuance to the availability of tangible government assets.

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However, the government introduced a hybrid structure to expand issuance capacity. It combines Ijarah with Commodity Murabaha, allowing a larger volume of Sukuk issuance against the same asset base.

The introduction of tradable three-month and six-month Sukuk has also addressed a gap in the short-term sovereign Islamic yield curve. Consequently, these instruments provide additional benchmarks for pricing across the wider Islamic finance market.

Finance Minister and SBP Governor Attend Ceremony

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb attended the gathering as chief guest. SBP Governor Jameel Ahmad also addressed the event.

Khurram Schehzad, Adviser to the Finance Minister on Economic and Financial Reforms, and other senior Ministry of Finance officials were also present.

Justice (Retd.) Mufti Muhammad Taqi Usmani, Chairman of Meezan Bank’s Shariah Board, delivered the keynote address.

Speaking at the event, Meezan Bank President and CEO Dr Syed Amir Ali appreciated the Ministry of Finance and the SBP for their leading roles in expanding Pakistan’s sovereign Sukuk market.

Meanwhile, Senator Muhammad Aurangzeb acknowledged the contributions of the central bank and the joint financial advisers towards achieving the milestone.

Shariah Perspective on Short-Term Sukuk

Dr Muhammad Imran Ashraf Usmani, Shariah Board Member of Meezan Bank, discussed the Shariah perspective on the future development of Pakistan’s Sukuk market.

He said recent innovations, particularly short-term Sukuk, could provide a viable alternative to conventional Treasury Bills (T-Bills).

He added that these instruments would support Pakistan’s transition towards a broader Islamic financial system.