The federal government has decided to introduce New Hybrid Sukuk bonds for the first time during the current fiscal year. The initiative is part of its strategy to diversify financing sources and strengthen the country’s funding options.
According to sources in the Ministry of Finance, the New Hybrid Sukuk model will differ from traditional Sukuk structures. Unlike conventional Sukuk, which depend only on pledged assets, the new model will also allow the government to raise funds through commodity sales.
Officials said this approach is expected to provide greater flexibility in Islamic financing. It will also help the government expand its funding base while following Shariah-compliant financial principles.
Under the proposed framework, a third-party entity will be appointed to facilitate the sale of commodities. These commodities will be sold directly in the market as part of the financing process.
The government believes the New Hybrid structure will improve access to financing by combining asset-backed securities with commodity-based transactions. This method is expected to create additional opportunities for raising funds.
Sources said the Ministry of Finance will present the hybrid Sukuk issuance plan to the International Monetary Fund (IMF) before moving ahead with the offering. The government aims to keep international financial partners informed about the new financing mechanism.
To support the issuance, the ministry has requested the National Highway Authority (NHA) to provide details of its assets. These assets may be used as part of the Sukuk structure.
Officials estimate that the total value of NHA assets now exceeds Rs. 7 trillion. This represents a significant increase from the estimated Rs. 5.5 trillion valuation recorded during the previous fiscal year.
The higher asset valuation is expected to strengthen the government’s ability to issue Sukuk bonds. It will also provide a larger asset base for the new financing framework.
Sukuk bonds are widely used in Islamic finance because they comply with Shariah principles. Instead of relying on interest-based lending, Sukuk are backed by tangible assets or other approved financing structures.
By introducing the New Hybrid Sukuk model, the government aims to modernize its Islamic financing strategy and attract a broader range of investors. Officials believe the new structure can support future borrowing needs while offering greater financial flexibility.
The move also reflects ongoing efforts to diversify public financing methods and reduce dependence on traditional borrowing channels. Authorities expect the hybrid model to improve investor confidence by introducing an innovative financing mechanism backed by valuable public assets.
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If implemented successfully, the New Hybrid Sukuk bonds could become an important part of Pakistan’s long-term financing strategy. The initiative is expected to support infrastructure funding, improve liquidity, and strengthen the country’s Islamic capital market in the years ahead.
