The State Bank of Pakistan (SBP) successfully raised Rs444.9 billion through its latest Pakistan Investment Bonds (PIBs) auction, conducted on December 17, 2025, with settlement taking place on December 18. The auction attracted total bids amounting to Rs2.48 trillion, of which the central bank accepted Rs444.9 billion in face value.
The total acceptance included Rs406.8 billion from competitive bids, Rs28.6 billion from non-competitive bids, and Rs9.5 billion through short selling arrangements. Among the various tenors, 2-year zero-coupon bonds led the auction with Rs116.87 billion in accepted bids, reflecting strong investor preference for shorter-duration securities amid current market conditions.
Following the 2-year tenor, 10-year bonds saw Rs104.19 billion in acceptance, while 3-year and 5-year bonds attracted Rs84.34 billion and Rs103.36 billion, respectively. The 15-year zero-coupon bonds recorded Rs36.2 billion in accepted bids, indicating continued interest in longer-term instruments despite slightly higher yields.
The auction’s weighted average yields varied across tenors, ranging from 10.75% for 2-year bonds to 11.99% for 15-year bonds. The 10-year benchmark yield settled at 11.66%, reflecting market expectations for interest rate trends and investor appetite for government-backed securities.
This latest auction demonstrates continued demand for government securities in Pakistan and provides a vital mechanism for the central bank to manage public debt while maintaining liquidity in the financial system. Investors across competitive and non-competitive categories participated actively, signaling confidence in the government’s debt instruments.
The SBP’s successful auction also contributes to strengthening Pakistan’s capital markets by providing transparent pricing and fostering participation from institutional and retail investors. By diversifying tenors and managing yields effectively, the central bank aims to support sustainable borrowing and enhance market efficiency in line with broader fiscal and monetary objectives.
Overall, the December 2025 PIBs auction highlights both robust investor participation and strategic debt management, reinforcing the role of government securities in Pakistan’s evolving financial ecosystem.
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