PSX reports record Rs3.5tr Sukuk issuance

Finance ministry says debt-to-GDP ratio improves to 68.5% as govt advances reforms

KARACHI:

The Pakistan Stock Exchange (PSX), in collaboration with the finance ministry, hosted an investor briefing to discuss the country's debt management strategy, Sukuk issuance and fiscal reforms, according to a statement on Friday.

The session brought together senior ministry officials, PSX leadership, asset managers, banks and brokers.

PSX Managing Director and CEO Farrukh H Sabzwari said the successful inaugural hybrid Sukuk issuance marked a milestone. Sukuk issuance in FY2026 reached Rs3.5 trillion, nearly double the Rs2.2 trillion recorded in FY2025. Overall issuance through the capital market reached Rs6.4 trillion.

Average daily traded volume rose to Rs3.9 billion, compared to Rs2 billion last year. Secondary market participation expanded significantly, with 11 banks and three asset management companies providing direct market access, while 51 Bills and Bonds-enabled brokers offer trading in Sukuk.

Advisor to the Finance Minister Khurram Shehzad said Pakistan's budget management approach is built on three pillars: relief, growth and fiscal responsibility. The debt-to-GDP ratio improved from 75.2% in 2023 to 68.5% today. Early retirements of expensive debt totalled Rs4.7 trillion over the past two years. Debt growth slowed to 5%, the lowest in 15 years, compared to an average of 12% previously.

Privatisation is advancing with three distribution companies scheduled for launch by year-end, alongside interest from international investors.

Advisor on Debt Omer Khan said debt sustainability remains the central focus. Average time to maturity increased from 2.6 years to 3.9 years. Liability management operations peaked at Rs2,923 billion in FY2026, up 62.7% year-on-year.