Govt raises over Rs309 in Ijarah Sukuk Auction

October 15, 2025 (MLN): The Government of Pakistan successfully raised Rs309.59 billion (Face Value) through the primary market auction of GoP Ijarah Sukuk (GIS) conducted on October 14, 2025.

This total amount significantly surpassed the aggregate auction target of Rs250bn.

The auction saw an exceptional total demand, with bids received across all tenors reaching a face value of Rs1,056.5bn.

The total amount raised was primarily concentrated in the Fixed Rental Rate (FRR) instruments and the 10-Year Variable Rental Rate (VRR) Sukuk:

Fixed Rental Rate (FRR) Sukuk played a critical role in the mobilization of funds. The GIS 05-Year FRR was the largest accepted category, raising Rs104.10bn at a cut-off rental rate of 11.13% and a cut-off price of 100.03.

The GIS 10-Year Zero Coupon also saw heavy demand, resulting in an accepted amount of Rs77.01bn against its Rs25bn target, with a cut-off price of 32.63 and a cut-off rental of 11.85%.

Furthermore, the GIS 03-Year FRR raised Rs. 30.71 Billion at a cut-off rental rate of 10.82% and a cut-off price of 99.82.

The shortest-term instrument, the 1-Year Discounted IJARAH Sukuk, raised Rs. 66.59 Billion with a cut-off rental rate of 10.43% at a price of 90.58.

In the Variable Rental Rate (VRR) category, results were mixed. The GIS 10-Year VRR successfully raised Rs31.18bn at a cut-off price of 100.00.

However, despite receiving bids worth Rs58.43bn, all bids for the GIS 05-Year VRR were rejected by the government.

Overall, the total amount raised consisted of Rs306.86bn in competitive bids and Rs2.74bn in non-competitive bids. 

The settlement date for all accepted instruments is October 15, 2025.

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