Pakistan’s Sukuk issuance surges 113% to Rs4tr in 2026

November 12, 2026 (MLN): Pakistan has pushed about Rs10 trillion of Sukuks through the finishing line, with issuance in 2026 reaching Rs4.4tr, a 113% year-on-year increase, said Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at a ceremony marking the milestone, held alongside the issuance of Hybrid and Short-Term Sukuk.

He said the increase was not incremental but very significant. Last year’s issuance was close to Rs2tr, while issuance in 2020 was close to Rs761bn, which translates into a five-year compound annual growth rate of about 22%.

Muhammad Aurangzeb said efforts will continue to diversify the Sukuk market and introduce greater flexibility in sovereign financing instruments. One important development, in conjunction with the State Bank, is the introduction of hybrid government Sukuk, which combines different Sharia-compliant structures and provides greater flexibility in the use of government-owned assets.

He added that, as mentioned by Maulana Taqi Usmani, the introduction of shorter-tenor Sukuks, including 3 to 6-month instruments, filled a big gap and is an important step towards developing a credible Sharia-compliant yield curve across different maturities.

On foreign investment, he said inflows through SCRA over the past few months have been positive in T-bills and PIBs, but foreign investment in Sukuks remains underwhelming.

He stressed the need to actively promote Sukuks among international investors and diversify foreign portfolio investments into Sharia-compliant instruments, with banks, primary dealers and brokers working together.

Regarding digital platforms, he said telecom platforms and the State Bank have created a platform to facilitate retail investment in Sukuks.

This is important because participation should not be limited to institutional or large investors, and someone with Rs5,000 should be able to participate, with scaling up to be achieved through digital platforms.

For the long-term corporate debt market, he said it is essential to move towards listed Sukuks. A mandate has been given by the Ministry of Power to a national grid company, which is in the process of issuing its first-ever listed Sukuk. Once successful, this will set a benchmark for other corporates to come in.

Muhammad Aurangzeb said SECP, the State Bank, the Stock Exchange and CDC must constantly work together to develop a more comprehensive Sukuk market ecosystem.

He said the Ministry of Finance and the government are absolutely committed to developing a deep, diversified and liquid Islamic capital market.

Broadening the discussion beyond Islamic finance to how society approaches learning, understanding and progress, he cited Quranic verses.

He noted that the Quran has been made easy for remembrance and is there to be read, understood and learned from, so a sincere effort should be made to engage with its teachings.

He highlighted the emphasis on reflection, with people encouraged to think, examine and understand the teachings themselves. He also pointed to the invitation to come to a word that is equitable, saying that even amid differences, an earnest effort should be made to recognise what is common and build upon it, focusing on what brings people together rather than what divides them.

He said Islamic scholarship has a rich tradition and that the development of Islamic finance shows the contributions made over decades by scholars like Maulana Taqi Usmani.

At the same time, he said reading, reflection and informed reasoning must be encouraged. Ijtihad has an important place in Islamic jurisprudence, and as new economic and financial questions arise, sound scholarship, informed discussion and a thoughtful understanding of the Quran and Sunnah are needed.

He called for an environment where knowledge is shared, questions are discussed respectfully, and different perspectives contribute to collective understanding.

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