The Government of Pakistan raised a combined Rs134.6 billion through its latest Government of Pakistan Hybrid Sukuk (GHS) auctions conducted via the Pakistan Stock Exchange (PSX) Auction System, reflecting strong investor demand across multiple tenors.

The government had set a combined pre-auction target of Rs150 billion, including Rs100 billion for the Fixed Rental Rate (FRR) Hybrid Sukuk and Rs50 billion for the 10-Year Fixed Rate Zero Coupon Government of Pakistan Ijarah Sukuk (GIS).

For the 3-year and 5-year Fixed Rental Rate Hybrid Sukuk, investors submitted bids totaling Rs229.79 billion, significantly exceeding the target. The government accepted Rs109.64 billion, including Rs108.80 billion through competitive bids and Rs833 million through non-competitive bids.

The 5-year tenor attracted the largest allocation, with Rs75.75 billion accepted at a cut-off yield of 11.7994%, while the 3-year Sukuk secured Rs33.89 billion at a cut-off yield of 11.7495%.

In the separate auction for the 10-year Fixed Rate Zero Coupon Ijarah Sukuk, the government received bids worth Rs25.25 billion and accepted Rs25.01 billion, comprising Rs25 billion in competitive bids and Rs9.68 million through non-competitive bids. The auction cleared at a cut-off yield of 12.3989%.

The strong participation in the Fixed Rental Rate Sukuk auction underscores continued investor appetite for Shariah-compliant government securities, particularly medium-term instruments. Meanwhile, the successful placement of the 10-year Zero Coupon Sukuk highlights sustained demand for longer-term Islamic investment products despite higher yields.

The latest auction forms part of the government's ongoing strategy to diversify its domestic borrowing sources and strengthen the Islamic capital market through regular Sukuk issuances.