Sukuk market growing at 22% CAGR, but foreign investment remains underwhelming, says Aurangzeb

Finance Minister Muhammad Aurangzeb said Pakistan’s Sukuk market has expanded at an annual compound rate of about 22%, while overseas investment in the Sharia-compliant instruments remains below potential. He made the remarks at an event marking Rs10 trillion in sovereign Sukuk and the issuance of hybrid and short-term instruments, Business Recorder reported.

Aurangzeb pointed to hybrid government Sukuk and three- to six-month offerings as steps that broaden financing options and help establish a yield curve across maturities. He said banks, primary dealers and brokers should promote Sukuk abroad, while digital platforms could widen retail access. The Ministry of Power has also given National Grid Company the mandate to issue its first listed Sukuk, which Aurangzeb said could provide a reference for other companies if successful.