Islamabad, Dec 5: In 2024, the Government of Pakistan raised Rs. 2 trillion through 15 Sukuk auctions conducted via the PSX auction system. The largest amount of Rs. 353 billion was raised in the final auction of the year on December 3, 2024, with 60% of funds coming from 10-year Sukuk.
- Breakdown by Tenor: 38% (Rs. 0.8 trillion) was raised in 5-year Sukuk, with 74% in variable rate Sukuk and 26% in fixed rate. The second-largest amount, Rs. 548 billion (28% of the total), was raised in 1-year discounted Sukuk.
- Participation and Yield Trends: The total participation in the 15 auctions amounted to Rs. 6.2 trillion, far exceeding the target of Rs. 2.1 trillion, with Rs. 2 trillion successfully raised. Yield on 1-year Sukuk dropped from 19.5% to 10.99%, with a discount of up to 184bps recorded in November 2024.
The Government also introduced new Sukuk products in 2024 to broaden the investor base and reduce borrowing costs. Notably, 1-year discounted GOP Ijara Sukuk (GIS) were introduced, resulting in a cost reduction of over 150bps compared to 1-year Treasury bills (T-bills).
