Islamic debt market deepens as Pakistan posts biggest-ever Sukuk issuance

Pakistan's government raised a record amount of over Rs2 trillion through domestic Sukuk issuances in 2025, marking the highest annual volume since Islamic bonds were introduced in 2008 and highlighting the rapid deepening of the country's Islamic capital market. The milestone was underscored by Adviser to the Finance Minister Khurram Shehzad, who said in a post on X that the Ministry of Finance (MoF) had set a historic record in Sukuk issuance, calling it a landmark breakthrough for Islamic finance in Pakistan. According to the MoF, the record issuance was executed through the Debt Management Office in collaboration with Joint Financial Advisors (JFAs). During 2025, the government conducted 61 Sukuk issuances across one-year, three-year, five-year and ten-year tenors, structured under both fixed rate return (FRR) and variable rate return (VRR) formats.