Government of Pakistan Ijarah Sukuk (GIS) has seen significant progress in its issuance and accessibility since the shift of its primary market auctions to the Pakistan Stock Exchange (PSX) in December 2023. This transition to the capital market infrastructure has broadened participation, improved transparency, and streamlined the auction process through a robust, in-house digital auction system developed by PSX.
GIS are Shariah-compliant financial certificates representing ownership in tangible assets, usufructs, or services. Unlike conventional bonds, GIS provide returns based on asset rentals rather than interest, making them compatible with Islamic principles.
The Government issues primarily Ijarah Sukuk based on lease contracts, offering investors an ethical and Shariah-compliant investment option. The launch of GIS auctions at PSX marked a historic shift, enabling greater transparency, efficient price discovery, and wider market access.
How GIS Auctions Work
Investors can submit:
Competitive bids – specifying the desired rental rate or spread
Non-competitive bids – accepting the rental rate decided by the market
GIS offers stable, low-risk returns through fixed or variable rental payments, with tenors of:
1 year
3 years
5 years
10 years
The minimum investment requirement is PKR 5,000, enabling broad accessibility for:
Individual investors
Non-resident Pakistanis (via Roshan Digital Accounts)
Foreign investors
Investors can participate in primary market auctions and also trade GIS in the secondary market via any Bills and Bonds (BnB) enabled broker:
https://www.psx.com.pk/psx/themes/psx/uploads/List-of-BnB-Enabled-Brokers.pdf
Primary and Secondary Market Performance
Since the introduction of GIS on the PSX platform:
Primary market issuance: approximately PKR 3 trillion
Secondary market trading: more than PKR 600 billion
Average oversubscription: 3.91×, indicating strong investor demand
Retail investors may participate through registered brokerage firms or online trading platforms. Detailed procedures are available on PSX’s website.
A Major Milestone: Pakistan’s First-Ever Green Sukuk
A significant milestone for PSX — and for Pakistan — was the launch of the first-ever Green Sukuk at PSX, which successfully raised PKR 31.99 billion.
Proceeds from this issuance support environmentally sustainable projects such as:
Renewable energy
Climate resilience initiatives
This Green Sukuk aligns Pakistan’s capital markets with global Environmental, Social, and Governance (ESG) standards and reflects growth in the global ESG Sukuk market, where Islamic financial instruments are increasingly used to fund green initiatives.
Future Outlook and Upcoming Enhancements
Looking ahead, the GIS program aims to:
Introduce additional tenors
Expand Islamic financing structures, including Bai Muajjal Sukuk
Enhance retail investor participation through improved digital platforms
Increase awareness initiatives for broader investor education
These developments demonstrate Pakistan’s commitment to expanding Islamic finance while integrating with modern capital market systems.
GIS represents a major step forward in aligning Islamic finance with contemporary capital markets. For investors seeking a Shariah-compliant, low-risk, transparent investment option, GIS provides a credible and well-structured solution.
Where to Find More Information
Information on upcoming auctions, primary market results, and secondary market trading is available at:
By: Shahzeb Faisal
Assistant Manager
Pakistan Stock Exchange (PSX)