Pakistan adjusts Sukuk targets as Maldives receives credit upgrade

The Pakistani government has reduced the auction targets for its three-year and 10-year fixed-rate Sukuk. Following advice from the Debt Management Office, the targets for both the three-year hybrid Sukuk and the 10-year zero-coupon Ijarah Sukuk were lowered from Rs50 billion to Rs25 billion each. The target for the five-year hybrid Sukuk remains at Rs50 billion. The three-year instrument carries a 12% profit rate, while the five-year instrument is set at 12.25%.

In the Maldives, Moody’s Ratings has upgraded the nation’s sovereign credit rating from Caa2 to Caa1 with a stable outlook. The upgrade reflects a reduced risk of near-term debt default, supported by improved foreign exchange reserves and enhanced debt repayment capacity. Key factors cited include the upcoming repayment of a USD 500 million sukuk in 2026, the settlement of a USD 400 million currency swap with India, and increased deposits into the Sovereign Development Fund. Financial assistance from the World Bank, Asian Development Bank, and the OPEC Fund has also strengthened the country’s fiscal position.