In a historic milestone for Pakistan’s Islamic financial sector and sovereign debt management, in 2026 the Government of Pakistan (GOP) Sukuk portfolio has crossed the PKR 10 trillion mark, both in terms outstanding amount and total issuances The achievement was commemorated by Meezan Bank at a gathering in Islamabad that brought together the Ministry of Finance, the State Bank of Pakistan, fellow Joint Financial Advisors Dubai Islamic Bank (Pakistan) Limited, Bank Islami Pakistan Limited and Bank Alfalah Limited, all of whom have contributed to the development of Pakistan’s Islamic capital market.
The Government of Pakistan issued PKR 4.179 trillion in Sukuk between January and 31 October 2026, more than double the record PKR 2.052 trillion issued in all of 2025. The expansion has been supported by new issuance structures, regulatory facilitation and broader participation by financial institutions.
Since 2008, GOP Sukuk have been issued mainly under the Ijarah structure, which ties issuance to the availability of tangible state assets. To expand capacity, the Government introduced a hybrid structure combining Ijarah with Commodity Murabaha, allowing the same asset base to support a larger volume of issuance.
The launch of tradable three- and six-month Sukuk has also addressed a longstanding gap at the short end of the sovereign Islamic yield curve, providing benchmarks for pricing across the wider Islamic finance market.
The gathering was addressed by Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, who attended as Chief Guest, and Mr. Jameel Ahmad, Governor, State Bank of Pakistan. Mr. Khurram Schehzad, Adviser to the Finance Minister on Economic and Financial Reforms, and other senior officials of the Ministry of Finance were also present. Justice (Retd.) Mufti Muhammad Taqi Usmani, Chairman, Shariah Board of Meezan Bank, delivered the keynote address.
Speaking at the event, Dr Syed Amir Ali, President & CEO of Meezan Bank, appreciated the leading role of the Ministry of Finance and the State Bank of Pakistan in expanding the sovereign Sukuk market in Pakistan.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb recognised the contribution of the State Bank of Pakistan and the Joint Financial Advisors in achieving this significant milestone.
Dr. Muhammad Imran Ashraf Usmani, Shariah Board Member, Meezan Bank, while discussing Shariah perspectives on the way forward for Pakistan’s Sukuk market, said that the recent innovations in the form of short-term Sukuk will become a viable alternative to conventional T-Bills and will support the transformation journey of Pakistan.
