Pakistan’s Government Sukuk Portfolio Crosses Rs10 Trillion Mark

Meezan Bank celebrates the milestone as government Sukuk issuance reaches Rs4.179 trillion in the first 10 months of 2026.

Pakistan’s Government of Pakistan (GOP) Sukuk portfolio has crossed Rs10 trillion in both outstanding value and cumulative issuances. The achievement marks significant growth in the country’s Islamic finance market.

Meezan Bank celebrated the milestone at a ceremony in Islamabad. The event was attended by representatives of the Ministry of Finance, the State Bank of Pakistan (SBP) and leading financial institutions.

Finance Minister Senator Muhammad Aurangzeb attended as the chief guest, while SBP Governor Jameel Ahmad was also present. Representatives of the Joint Financial Advisors, including Dubai Islamic Bank (Pakistan) Limited, BankIslami Pakistan Limited and Bank Alfalah Limited, also attended.

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

The growth reflects the increasing use of Islamic financial instruments to meet government financing needs. New issuance structures, regulatory support and greater participation from financial institutions have also contributed to this progress.

Since 2008, the government has mainly issued Sukuk through the Ijarah structure, which links investments to tangible government assets.

To increase issuance capacity, the government introduced a hybrid structure combining Ijarah and Commodity Murabaha. This approach allows the government to issue more Sukuk using its existing pool of assets.

The introduction of tradable three-month and six-month Sukuk has also expanded the availability of short-term Islamic government securities. These instruments are expected to help establish pricing benchmarks for the wider Islamic finance market.

The ceremony was also attended by Khurram Schehzad, Adviser to the Finance Minister on Economic and Financial Reforms, along with senior Ministry of Finance 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 sovereign Sukuk market.

Finance Minister Senator Muhammad Aurangzeb also recognised 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 Pakistan’s Sukuk market from a Shariah perspective.

He said the newly introduced short-term Sukuk could provide an alternative to conventional Treasury Bills. They could also help Pakistan move towards a stronger Islamic financial system.

The Rs10 trillion milestone highlights the growing role of Sukuk in government financing. It also reflects the expansion of Shariah-compliant investment opportunities in Pakistan’s financial market.