KARACHI, April 16, 2026 — BankIslami Pakistan Limited has approved the issuance of a Shariah-compliant Sukuk worth up to Rs5 billion, aiming to strengthen its regulatory capital and support future growth, the bank said in a filing with the Pakistan Stock Exchange (PSX) on Thursday.
The bank’s board of directors authorized the issuance of the privately placed and over-the-counter listed Sukuk as a Tier 2 capital instrument under Basel III guidelines issued by the State Bank of Pakistan.
The proposed Sukuk is subject to obtaining all necessary corporate and regulatory approvals, along with the completion of required formalities. The move is part of the bank’s broader strategy to enhance its capital adequacy position and expand its banking operations.
BankIslami said the instrument would help strengthen its balance sheet while supporting sustainable growth in its Islamic banking portfolio. The issuance is expected to attract institutional investors seeking Shariah-compliant investment opportunities.
In addition, the bank plans to seek shareholder approval for the issuance of ordinary shares that may arise from the conversion of the Sukuk under specific conditions. Such conversion would occur upon a trigger event, in line with the terms of the instrument and subject to directives from the central bank.
Analysts said the move reflects a broader trend among Pakistani banks to raise additional capital buffers in line with evolving regulatory requirements and to support lending growth.
They added that Sukuk instruments have gained popularity in Pakistan’s financial sector as banks look to diversify funding sources while adhering to Islamic finance principles.
The issuance is expected to contribute to the continued development of Pakistan’s Islamic banking and capital markets.