Govt aims for Rs350-400bn in Ijara Sukuk auction

The State Bank of Pakistan has set a Rs350-400 billion target for a three-year government Ijara Sukuk auction, according to Mettis Global. Islamic banks and Islamic banking branches are invited to participate through Bai Muajjal, a deferred-payment arrangement. The non-competitive round is scheduled for October 26, 2026, followed by competitive bidding on October 27.

The securities, identified as PK05S2910268, are due to be delivered on October 28 and mature on October 28, 2029. Bids must reach the central bank by 1200 hours on the relevant auction date, and results are expected on that day. The notice also says bids can be rejected without a stated reason, while operational details will be provided to participating institutions separately.

The auction links government borrowing with Islamic banking institutions, which are the invited participants. Its target and three-year tenor are relevant to readers following sovereign financing and the banking sector, although the notice does not specify the auction outcome.