Pakistan’s Government Sukuk Portfolio Crosses Rs10 Trillion

Government issues Rs4.179 trillion in Sukuk in the first 10 months of 2026 as Meezan Bank recognises key contributions to the growth of Islamic finance.

Pakistan’s government Sukuk portfolio has crossed Rs10 trillion in both outstanding value and total issuances. The milestone reflects the growing role of Islamic finance in the country’s financial system.

Meezan Bank celebrated the achievement at an event in Islamabad. Senior officials from the Ministry of Finance, the State Bank of Pakistan (SBP) and leading financial institutions attended the gathering.

The government issued Sukuk worth Rs4.179 trillion between January and October 31, 2026. This was more than double the previous annual record of Rs2.052 trillion, set in 2025.

The increase reflects stronger demand for Islamic financial products. New issuance methods, regulatory support and greater involvement from financial institutions have also helped expand the market.

Since 2008, the government has mainly used the Ijarah structure to issue Sukuk. This method links the investment to physical government assets.

To increase the volume of issuances, the government introduced a new structure combining Ijarah and Commodity Murabaha. This allows it to issue more Sukuk using its existing assets.

The government has also introduced three-month and six-month tradable Sukuk. These short-term instruments are expected to improve the Islamic securities market and help establish pricing benchmarks.

Federal Finance Minister Senator Muhammad Aurangzeb attended the ceremony as the chief guest. SBP Governor Jameel Ahmad was also present.

Khurram Schehzad, Adviser to the Finance Minister on Economic and Financial Reforms, joined the event along with other senior government officials.

Justice (Retd.) Mufti Muhammad Taqi Usmani, Chairman of Meezan Bank’s Shariah Board, delivered the keynote address.

Meezan Bank President and CEO Dr Syed Amir Ali appreciated the Ministry of Finance and the SBP for their efforts to develop Pakistan’s Sukuk market.

Finance Minister Senator Muhammad Aurangzeb also acknowledged the contributions of the central bank and Joint Financial Advisors in achieving the Rs10 trillion milestone.

Dr Muhammad Imran Ashraf Usmani, a member of Meezan Bank’s Shariah Board, discussed the future of Islamic finance in Pakistan.

He said short-term Sukuk could offer an alternative to conventional Treasury Bills. He added that these instruments could help Pakistan move towards a stronger Islamic financial system.

The event also included representatives of the Joint Financial Advisors: Dubai Islamic Bank (Pakistan) Limited, BankIslami Pakistan Limited and Bank Alfalah Limited.

Their participation highlighted the importance of cooperation between financial institutions in expanding Pakistan’s Islamic capital market.