Sukuk and Islamic savings options in Pakistan

Sukuk in Pakistan pay the highest fixed return of the Shariah-compliant savings options we compared. At the government’s 7 October 2026 auction on PSX, 3-year sukuk cleared at a 12.74% yield and 5-year sukuk at 12.83%. Most listed government sukuk have a Rs 5,000 face value, and individuals can buy them through a bank IPS account or a PSX broker. National Savings’ Sarwa Islamic accounts pay 11.33% to 11.70% from 1 October 2026.

A sukuk is an Islamic certificate. Instead of lending to the government at interest, you own a share in a government asset and receive rent or a fixed profit on it. For comparison, SBP’s policy rate was 11.5% (14 September 2026) and CPI inflation was 10.3% in September 2026.

What do Islamic savings options pay in Pakistan?

Sukuk yields are set at each auction. Sarwa and bank rates change when National Savings or the bank revises them, so check the date next to each figure.

How do government sukuk work in Pakistan?

Since April 2026 the government has also issued hybrid sukuk. PSX’s transaction structure says at least 55% of the money raised goes into Ijarah (you jointly own a government asset and lease it back to the government) and the rest into Commodity Murabaha (a commodity is sold to the Finance Ministry at cost plus a fixed profit). The asset behind the short-term issues is land and buildings at Jinnah International Airport, Karachi.

PSX runs the auctions for the Finance Ministry’s Debt Management Office. The tenors on offer:

• Discounted sukuk (3 months, 6 months, 1 year): you pay less than face value and get the full face value at maturity.
• Fixed rental rate (3 and 5 years): the rental rate stays the same until maturity.
• Variable rental rate (10 years): the rental is a reference rate plus a margin, and changes with the reference rate. The 10-year sukuk issued on 16 April 2026 shows a current rental of 11.71% on PSX.
• Fixed-rate zero-coupon Ijarah sukuk (10 years): sold below face value, with no rental along the way.

The first hybrid auction in April 2026 raised Rs 116.4 billion, The News reported. It said the aim is to move government borrowing toward Shariah-compliant debt, in line with the target of converting the financial system to Islamic finance by January 2028.

What did the latest sukuk auction pay?

On 7 October 2026 the government took Rs 73.9 billion in 3- and 5-year sukuk against a Rs 75 billion target:

The yield is higher than the rental rate because buyers paid less than face value. Rates are higher than in August: PSX lists the 3-year sukuk issued on 5 August 2026 at an 11.00% rental, against 12.00% for the 8 October issue.

The next auctions on PSX’s calendar (9 October 2026): discounted and variable-rate sukuk on 14 and 28 October, 11 and 25 November, and 9 and 23 December; 3- and 5-year fixed-rate sukuk on 4 November and 16 December 2026.

How to invest in sukuk in Pakistan

There are two direct routes.

1. Through your bank, with an IPS account. SBP says all individuals and companies with a bank account can invest in government securities. You need an IPS (Investor Portfolio Securities) account, which any commercial bank can open and which holds your securities. SBP’s InvestPak portal lets you start the request online.

2. Through a PSX broker. Government sukuk have been auctioned through PSX since December 2023, when the first listed issue opened to retail investors in Rs 5,000 units, according to Meezan Bank, a joint financial adviser on the issue. 51 brokers enabled for bills and bonds trade government sukuk, according to a July 2026 Finance Ministry and PSX briefing reported by Nukta. The same briefing put sukuk issuance at a record Rs 3.5 trillion in FY2026. If you are new to PSX, see how to open a PSX account.

Sarwa Islamic accounts at National Savings

National Savings runs a separate Islamic window, Rafa National Savings, under its own Shariah board. It offers two products:

• Sarwa Islamic Savings Account (SISA): 11.33% a year from 1 October 2026, up from 9.00% between 29 January and 25 May 2026. The rate is an expected rate, and a change applies to all account holders from its effective date.
• Sarwa Islamic Term Account (SITA): 11.33% for 1 year, 11.57% for 3 years (profit every six months) and 11.70% for 5 years (profit monthly), from 1 October 2026.

These are about 1.1 points below the 3- and 5-year sukuk yields from the 7 October auction. For the other National Savings schemes, see National Savings certificates and rates.

Islamic bank accounts and term deposits

Islamic banks don’t pay a fixed rate on savings. SBP requires them to pay savers at least 75% of the weighted average gross yield of their deposit pools, and Meezan declares its rate after each month. Meezan’s savings account paid 6.63% for September 2026; Allied Islamic Saving Account paid 6.63% for August.

Term certificates pay more. Meezan’s 1-year certificate (Rs 50,000 and above) paid 9.56% at maturity for September 2026, and its 1.5-year certificate 10.12% with monthly profit. Compare banks in savings account profit rates and Meezan Bank vs other banks.

Islamic mutual funds

Shariah-compliant funds held Rs 2.2 trillion at the end of August 2026, nearly half of all open-end fund assets, according to MUFAP. Over the 365 days to 31 August 2026:

• 29 Shariah money market funds returned 9.33% to 11.03% (median 10.40%)
• 40 Shariah income funds returned 5.35% to 10.57% (median 9.23%)
• 22 Shariah equity funds returned 8.84% to 34.05% (median 13.71%)

Fund returns are not fixed: these are past returns, not a promise. See mutual funds in Pakistan and, for retirement saving, pension funds.

How is profit on sukuk taxed?

FBR’s withholding tax card (Finance Act 2026) lists these rates for people on the Active Taxpayer List (ATL); non-filers pay double:

• Sukuk issued by an SPV or company: 10% for an individual whose return is under Rs 1 million, 12.5% above that.
• Profit from a bank account or deposit: 20%.
• Debt-heavy mutual funds (50% or more of income from profit on debt): 25% on dividends.

The card doesn’t name government sukuk separately, so ask your bank which rate it will deduct. National Savings’ rate sheets don’t state the tax on Sarwa profit. If you aren’t a filer yet, see how to become a filer.

More guides: investment options in Pakistan, how to invest in PSX, Roshan Digital Account investments, Investing.