Pakistan’s Government of Pakistan (GOP) Sukuk portfolio has crossed the Rs10 trillion mark in both outstanding value and cumulative issuances, marking a significant development for the country’s Islamic financial market.

Meezan Bank commemorated the milestone at a gathering in Islamabad on Thursday, November 12, 2026. The event brought together representatives of the Ministry of Finance, the State Bank of Pakistan (SBP) and financial institutions involved in developing Pakistan’s Islamic capital market.

The participating institutions included Dubai Islamic Bank (Pakistan) Limited, BankIslami Pakistan Limited and Bank Alfalah Limited, which serve as joint financial advisers.

Government Sukuk Issuances More Than Double

The Government of Pakistan issued Sukuk worth Rs4.179 trillion between January and October 31, 2026.

This figure exceeded the previous annual record of Rs2.052 trillion, issued throughout 2025, by more than double.

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According to the information shared at the event, new issuance structures, regulatory support and wider participation by financial institutions have helped expand the market.

New Sukuk Structures Expand Issuance Capacity

Since 2008, the government has mainly issued Sukuk through the Ijarah structure. This approach links issuance to the availability of tangible government assets.

To increase issuance capacity, the government introduced a hybrid structure combining Ijarah with Commodity Murabaha. The arrangement allows a larger volume of Sukuk issuance using the same asset base.

The introduction of tradable three-month and six-month Sukuk has also addressed a gap in the short-term sovereign Islamic yield curve.

These instruments provide benchmarks for pricing across Pakistan’s wider Islamic finance market.

Finance Minister and SBP Governor Attend Ceremony

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb attended the gathering as chief guest. State Bank Governor Jameel Ahmad also addressed the event.

Khurram Schehzad, Adviser to the Finance Minister on Economic and Financial Reforms, attended alongside 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 leadership of the Ministry of Finance and the SBP in expanding Pakistan’s sovereign Sukuk market.

Finance Minister Muhammad Aurangzeb also acknowledged the contributions of the central bank and joint financial advisers towards achieving the milestone.

Short-Term Sukuk Seen as Alternative to T-Bills

Dr Muhammad Imran Ashraf Usmani, a member of Meezan Bank’s Shariah Board, discussed the Shariah perspective on the future development of Pakistan’s Sukuk market.

He said recent innovations, particularly short-term Sukuk, could become a viable alternative to conventional Treasury Bills.

He added that these instruments would support Pakistan’s broader transition towards an Islamic financial system.

The Rs10 trillion milestone highlights the growing role of Islamic financing in government borrowing. It also reflects efforts by financial institutions and regulators to develop new instruments for Pakistan’s Islamic capital market.