Govt raises Rs148bn through GoP Hybrid Sukuk auctions

According to Mettis Global, the government borrowed Rs148.436bn in face value through two sukuk instruments sold in an auction on August 19, 2026. The fixed-rate discounted tranche brought in Rs80.731bn, while the variable rental rate tranche contributed Rs67.705bn. Both sales were settled on August 20, with the sukuk offered through the PSX auction platform.

The fixed-rate discounted issue drew bids worth Rs243.782bn against a pre-auction goal of Rs75bn, and the government accepted Rs77.930bn through competitive bidding. The three-month paper accounted for the largest share at Rs52.830bn, priced at a cut-off yield of 11.4788%. The one-year and six-month maturities cleared at yields of 11.9400% and 11.6801%, and non-competitive orders added Rs2.801bn.

The ten-year VRR sukuk was reopened for a second time in a separate sale, against a target of Rs50bn, after first being issued on July 23, 2026. Tenders reached Rs329.225bn, and the government took Rs67.575bn in competitive bidding, with the cut-off price landing at 98.5878 and the yield at 11.6304%. That yield sits 0.24% above a reference rate of 11.3904%, which tracks recent six-month T-Bill yields, while the total raised for this instrument reached Rs67.705bn.