The federal government has announced its borrowing plan for the fourth quarter of 2025, setting a target of Rs6.5 trillion to meet fiscal and liquidity requirements. The State Bank of Pakistan (SBP), which manages the auction process for government debt instruments, released the detailed calendar for October to December, covering both Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs).
According to the plan, the largest portion of borrowing will come from short-term instruments. The SBP has scheduled seven auctions of Market Treasury Bills, with a cumulative target of Rs4.35 trillion. These auctions will provide the government with immediate liquidity to manage day-to-day expenditures and refinance maturing debt. The MTB auctions begin on October 1, with Rs750 billion on offer, followed by another Rs750 billion on October 15 and Rs800 billion on October 29. Two auctions are scheduled in November for Rs350 billion and Rs500 billion, while December will see auctions of Rs800 billion and Rs400 billion on the 10th and 24th respectively.
The total maturing amount of MTBs during this period is Rs4.605 trillion, which highlights the government’s reliance on rolling over short-term debt. Additionally, provincial governments are expected to contribute around Rs600 billion in select auctions, adding to liquidity inflows.
On the long-term front, the SBP plans to raise Rs1.25 trillion through fixed-rate Pakistan Investment Bonds. These will be issued across multiple maturities, including two-year, three-year, five-year, 10-year, and 15-year instruments. Three auctions are scheduled this quarter: Rs450 billion on October 14, Rs400 billion on November 5, and Rs400 billion on December 17. Settlement for each auction is scheduled one day after the bidding date. The maturing amount for these bonds during the quarter stands at Rs652 billion.
In addition, Rs900 billion will be mobilized through 10-year floating-rate PIBs, which were first introduced in July 2025. These semiannual floaters carry a coupon rate of 10.8974 percent, offering investors returns linked to market dynamics. The first auction for these floating-rate instruments is set for October 1, targeting Rs200 billion, with six more auctions lined up until December 24.
Analysts view the borrowing plan as a balancing act between meeting urgent liquidity needs and ensuring medium- to long-term fiscal stability. With nearly Rs4.6 trillion worth of Treasury Bills maturing during the quarter, much of the planned borrowing will go toward debt rollover rather than fresh spending. The PIB program, however, provides an opportunity to lock in financing at fixed and floating rates, helping the government manage interest rate risks and extend the maturity profile of its debt.
The aggressive borrowing calendar comes against the backdrop of Pakistan’s ongoing fiscal challenges. Rising external debt obligations, combined with limited global financing options, have left the government dependent on domestic markets to plug financing gaps. This borrowing plan underscores the importance of domestic investors, particularly commercial banks, in sustaining government financing needs.
Market observers will be closely monitoring investor appetite for these auctions, especially given the current interest rate environment and inflation outlook. The outcome of these auctions will also provide signals about market confidence in the government’s fiscal management.
By setting a Rs6.5 trillion target for the final quarter of 2025, the government has reinforced its reliance on local capital markets to sustain fiscal operations, while also signaling its intent to maintain liquidity in the system.
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