Pakistan Finance Minister celebrates Rs10 trillion Sukuk milestone and calls for foreign growth

Market growth and new instruments

The minister stated that sovereign Sukuk issuance grew from approximately Rs2 trillion last year to the current milestone. This represents a significant 113 percent year-on-year increase while the five-year compound annual growth rate stands at around 22 percent. New hybrid government Sukuk combine different Shariah-compliant structures to provide greater flexibility in utilizing government-owned assets. Short-term instruments with three- to six-month maturities also address a longstanding gap in the market.

Foreign investment challenges and retail access

Despite positive inflows through Special Convertible Rupee Accounts into Treasury Bills, foreign investment in Sukuk remains below expectations. The minister urged stakeholders to actively promote these instruments among international investors to diversify the portfolio. Efforts are underway to expand retail participation through digital platforms allowing individuals to invest amounts as small as Rs5,000. Listed Sukuk development is also progressing with the Ministry of Power issuing its first mandate to the National Debt Company.

Regulatory bodies and future steps

For these initiatives, the Pakistan Stock Exchange, State Bank of Pakistan, and the Securities and Exchange Commission of Pakistan must work together. This successful issuance seeks to set a standard that will allow other corporations to join the listed Sukuk market. These developments reflect sustained efforts to diversify the market and introduce flexibility in sovereign financing instruments.