The Pakistani government has announced plans to introduce the country’s first hybrid Sukuk bonds this fiscal year. This new Islamic financing tool aims to raise funds in a Shariah-compliant way while reducing dependence on traditional borrowing.
Unlike regular Sukuk that use only government assets as backup, hybrid Sukuk will combine asset-backed financing with commodity-based deals. The government will use public assets and also sell commodities in the market with help from a third-party institution. This flexible structure will allow for larger fundraising.
The Ministry of Finance is working on the plan. It has asked the National Highway Authority (NHA) for details of its assets, now valued at over Rs 7 trillion. This higher value will help issue more Sukuk. The government will also discuss the structure with the International Monetary Fund (IMF) to match ongoing economic reforms.
Pakistan has been expanding Islamic finance in recent years. Islamic banking is growing fast, and the country wants to build a stronger Shariah-compliant capital market. Hybrid Sukuk will attract more local and international investors who prefer Islamic products.
This step comes as Pakistan manages high debt and fiscal challenges. It supports the goal of moving away from interest-based systems as directed by courts and the Constitution. Recent hybrid Sukuk auctions have already shown strong interest, raising billions of rupees.
Experts believe this innovation will deepen the Islamic finance sector and provide sustainable funding options. It marks an important milestone for Pakistan’s economy.