The State Bank of Pakistan (SBP) has officially announced the appointment of Primary Dealers (PDs) and Special Purpose Primary Dealers (SPDs) for the fiscal year 2025-26, a move that underscores its commitment to maintaining a strong and competitive market for government securities. The new lineup was finalized after inviting applications on May 7, 2025, from all eligible institutions, as per the rules governing the selection and performance criteria for these critical financial intermediaries.
Following a thorough evaluation process, SBP has selected ten institutions to serve as Primary Dealers for the current fiscal cycle. These include United Bank Limited, Bank Alfalah Limited, National Bank of Pakistan, Habib Bank Limited, Habib Metropolitan Bank Limited, MCB Bank Limited, The Bank of Punjab, Pak Oman Investment Company Limited, JS Bank Limited, and Citi Bank N.A. Pakistan Branch. Each of these banks and financial institutions will play a central role in supporting the government’s debt market operations, facilitating the issuance and distribution of Treasury Bills, Pakistan Investment Bonds, and other instruments.
In addition to the PDs, SBP also named two entities as Special Purpose Primary Dealers for FY26: the Central Depository Company of Pakistan Limited (CDC) and the National Clearing Company of Pakistan Limited (NCCPL). These specialized institutions are tasked with broadening market participation and enhancing settlement and clearing infrastructure, thereby contributing to greater efficiency and transparency in the country’s capital markets.
The SBP further highlighted the top three performing PDs from the previous fiscal year 2024-25. United Bank Limited, Bank Alfalah Limited, and National Bank of Pakistan emerged as the leaders based on a comprehensive assessment of their activities, which typically includes performance in primary auctions, secondary market development, and compliance with regulatory standards. The central bank indicated that the performance rankings of all other PDs and SPDs for FY25 will be communicated individually through formal correspondence.
This structured approach to selecting PDs and SPDs is part of SBP’s broader strategy to deepen Pakistan’s domestic debt market and ensure the smooth execution of monetary policy. By fostering competition among primary dealers, the central bank aims to secure more efficient price discovery and liquidity in government securities, which in turn supports fiscal sustainability and financial sector stability.
For the banking industry, being appointed as a Primary Dealer is not only a mark of distinction but also a significant responsibility. These institutions are required to underwrite government securities, participate actively in auctions, and maintain vibrant secondary market operations. Similarly, the role of SPDs, particularly entities like CDC and NCCPL, is vital in modernizing the infrastructure that underpins settlement processes, which is critical for investor confidence and market development.
Analysts believe that consistent efforts to strengthen the PD and SPD framework will continue to enhance Pakistan’s ability to mobilize domestic resources efficiently, reduce reliance on external borrowing, and stabilize the macroeconomic environment. As FY26 unfolds, the performance of these newly appointed dealers will be closely watched, shaping the trajectory of Pakistan’s government debt market and its broader financial ecosystem.