ISSN 2330-717X

Government Of Pakistan Mobilizes US$1.23 Billion Through Sukuk Issues


On March 22, 2022, Government of Pakistan (GoP) through Ministry of Finance successfully concluded the reopening of Government of Pakistan Ijarah Sukuk (variable rate) issue # 24 and Government of Pakistan Ijarah Sukuk (Fixed rate) issue # 07. Cumulatively through this reopening of Sukuk, Ministry of Finance raised approximately PKR 226 billion or US$1.23 billion. 


This was a milestone transaction as PKR 226 billion is the highest amount ever raised by Ministry of Finance in a single month through GoP Ijarah Sukuk program. The transaction is noteworthy not only because of the mammoth issue size but also due to the significant it would result in the national exchequer. 

The pricing of the Sukuk was T-10bps for variable rate issue and 11.4% for the fixed rate issue which is a significant discount to the conventional T-bill rate of 12.24%. The first rental (coupon) payment of the variable rate issue would be calculated at 8.70% till the next re-pricing date falling on April 29, 2022.

Till date this year GoP has already been successful at raising PKR 478.5 billion under Sukuk issuance as against PKR 736.3 billion which was raised in the full year of 2021.

The mammoth Sukuk issuance at favorable rate has once again reiterated the fact that there is a huge need and potential of Sukuk of issuance in Pakistan which should be explored by the government to its advantage and for promotion of Islamic Financial system in Pakistan.


Shabbir H. Kazmi

Shabbir H. Kazmi is an economic analyst from Pakistan. He has been writing for local and foreign publications for about quarter of a century. He maintains the blog ‘Geo Politics in South Asia and MENA’. He can be contacted at [email protected]

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