The government has sharply increased the target size for its 10-year variable rental rate GoP hybrid Sukuk to Rs200 billion from Rs50 billion, according to a Pakistan Stock Exchange (PSX) notice following advice from the Debt Management Office (DMO). The revision applies to the 10-year variable rental rate (VRR) hybrid Sukuk reopening scheduled for June 10, 2026.
PSX said the auction target size in the term sheet and Annexure 'B' had been amended accordingly, while all other auction details notified earlier remain unchanged. The notice also stated that the per-investor maximum limit for non-competitive bids had been updated in the PSX auction system.
The 10-year VRR Sukuk was originally issued on April 16, 2026 and matures on April 16, 2036. It is being reopened through PSX under a hybrid Shariah structure combining Ijarah sale-and-lease-back and Commodity Murabaha transactions, with 55% of proceeds allocated to the Ijarah component and 45% to the Commodity Murabaha.
The term sheet says the benchmark for the floating return is linked to the six-month T-bill weighted average yield or the PKRV six-month rate, with the applicable first-period benchmark listed as 11.3685% and the bid spread for the 10-year listed VRR Sukuk set at +35 basis points. Profit is paid semi-annually and is reset at the start of each six-month rental period.
Separately, the PSX published a revised auction calendar for the GoP Hybrid Sukuk (GHS) and the GoP Ijarah Sukuk (GIS) covering June to August 2026. The calendar sets the cumulative target of Rs1.6 trillion for the discounted and variable-rate GHS issuances across six auctions, while the fixed-rate GHS and fixed-rate zero-coupon GIS auctions carry a combined target of Rs450 billion across three auctions.
The calendar shows two June VRR auctions on June 10 and June 23 with target sizes of Rs350 billion each, two July VRR auctions of Rs250 billion each, and two August VRR auctions of Rs200 billion each. Fixed-rate GHS and GIS auctions are scheduled for June 17, July 2, and August 4 with target sizes of Rs150 billion per auction.
Market participants said the larger reopening target signals a stronger government preference for mobilising longer-tenor Shariah-compliant domestic financing as authorities continue to diversify funding sources and deepen the listed sovereign Sukuk market. The Sukuk is listed and tradable on PSX, carries 100% SLR eligibility for eligible investors, and is open to individuals, institutions, Roshan Digital Account (RDA) customers, non-resident Pakistanis, and foreign investors under the amended Government of Pakistan Sukuk Rules.
Meanwhile, the Pakistani rupee gained marginally against the US dollar in the inter-bank market on Tuesday. At the close of trading, the local currency settled at Rs278.37 per dollar, strengthening by three paisa against Monday's closing level at Rs278.40. In international markets, the US dollar hovered near a two-month peak, supported by heightened geopolitical uncertainty in the Middle East and growing expectations that the Federal Reserve could raise rates later this year. Although Israel and Iran suspended direct attacks following an appeal from US President Donald Trump, investor caution persisted as Tehran warned it could resume strikes if Israel continued targeting Hezbollah positions in Lebanon.
Furthermore, gold prices in Pakistan moved higher, tracking gains in global bullion markets. In the domestic market, the price of gold rose by Rs2,830 per tola to settle at Rs455,063. Likewise, the rate for 10 grams of gold climbed by Rs2,547 to Rs389,534, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association. A day earlier, the price of gold had dropped by Rs3,094 per tola, closing at Rs452,233. In the international market, gold gained $28 to reach $4,326 per ounce, including a premium of $20. Silver prices also registered an increase in the local market, with the per-tola rate advancing by Rs141 to Rs7,314.
