The Ministry of Finance has set a historic record for Sukuk issuance in 2025, with more than Rs2 trillion worth of Sukuk issued for the first time in a single year.
According to sources and details provided by Finance Minister’s Adviser Khurram Shehzad, this record issuance was completed with the support of the Ministry of Finance’s Debt Management Office and Joint Financial Advisors. This initiative is being described as a major step toward accelerating Pakistan’s transition to a Shariah-compliant financial system. Overall, Sukuk bonds worth more than Rs2 trillion were issued.
It is worth noting that Sukuk are Islamic financial certificates, generally considered the Shariah-compliant equivalent of bonds. Khurram Shehzad further stated that through 61 issuances, Sukuk worth over Rs2 trillion were issued for tenures of one, three, five, and ten years.
He added that during the calendar year, Pakistan successfully launched its first-ever Green Sukuk, which received an overwhelming response from investors and was oversubscribed by 5.4 times. For the cash flows of the Green Sukuk, assets of Pakistan Railways, Trade Development Authority of Pakistan, National Highway Authority, Capital Development Authority, Pakistan Airports Authority, Pakistan Sports Board, and Karachi Port Trust were used as the underlying assets.
According to Khurram Shehzad, total Sukuk issuance from 2019 to 2025 has reached Rs8.7 trillion, while the outstanding Sukuk stock in the country has grown to Rs6.6 trillion. Total Shariah-compliant government debt has reached Rs7.1 trillion. He further noted that by December 2025, the share of Islamic financial instruments in government debt stood at 14.5 percent, compared to 12.6 percent in June 2025.
The Ministry of Finance has set a target to increase the share of Islamic debt to 20 percent by 2028. Khurram Shehzad added that Sukuk issuance has strengthened confidence and depth in the Islamic capital market and has supported financial stability and long-term economic growth.
This development highlights the growing role of Islamic financial instruments in the government’s domestic debt portfolio. He concluded that with improving macroeconomic conditions, a disciplined debt management strategy, and a clear roadmap for Islamic finance, Pakistan is taking steps toward building a stronger, more diversified, and future-ready government securities market.
