The State Bank of Pakistan has released its auction calendar for the period spanning November 2025 to January 2026, outlining an ambitious government plan to mobilize Rs5.3 trillion through the issuance of Market Treasury Bills and Pakistan Investment Bonds. The announced schedule underscores a continued reliance on domestic debt markets to manage liquidity, refinance maturing obligations, and support fiscal operations amid an evolving macroeconomic landscape.
According to the published data, the government intends to generate Rs3.6 trillion through Market Treasury Bills, comprising the largest portion of the borrowing plan for the quarter. An additional Rs1.2 trillion will be sourced from fixed-rate Pakistan Investment Bonds, while Rs500 billion is expected to be raised via floating-rate PIBs. Together, these instruments form a cumulative fund-raising target of Rs5.3 trillion for the three-month window.
The central bank has lined up six MTB auctions to fulfill this requirement. The month of November will open with two auctions, scheduled for November 12 and November 26, carrying targets of Rs550 billion and Rs650 billion respectively. December will follow a similar cadence, with auctions on December 10 and December 24 aimed at raising Rs800 billion and Rs400 billion. The borrowing momentum will continue into January 2026, where two more MTB auctions are planned for January 7 and January 21, each with an assigned target of Rs600 billion. This structured cadence reflects SBP’s continued practice of frequent short-term debt issuance to align with liquidity conditions and treasury needs.
Beyond short-term instruments, the government is also turning to longer-tenor debt. The SBP’s PIB schedule indicates a target of Rs1.7 trillion through bond sales, split between Rs1.2 trillion in fixed-rate PIBs and Rs500 billion in floating-rate equivalents. For the fixed-rate segment, three auctions are scheduled this quarter, each targeting Rs400 billion. These will be conducted on November 5, December 17, and January 14. This measured distribution across the quarter helps the government smooth its maturity profile while catering to investor appetite for predictable returns.
The PIB structure outlined in the calendar includes a variety of maturities. Fixed-rate securities available during this issuance cycle consist of two-year, three-year, five-year, ten-year, and fifteen-year maturities. Their respective coupon rates stand at zero for the two-year and fifteen-year instruments, 10.50 percent for the three-year, 11.00 percent for the five-year, and 11.50 percent for the ten-year. These instruments were originally issued in mid-2025, with the majority dated July 17, 2025, except for the fifteen-year tenor which was issued on June 19, 2025.
In parallel, six auctions are planned for floating-rate PIBs, which continue to draw interest from investors seeking protection against interest rate volatility. The ten-year floating-rate PIB issued on July 10, 2025, carries a semiannual coupon rate of 10.8974 percent, reflecting the evolving benchmark yield environment and market conditions at the time of issuance.
The government’s consolidated borrowing strategy in this period highlights an ongoing effort to strike a balance between short-term liquidity management and long-term debt sustainability. With the domestic financial sector remaining the primary participant in these auctions, the outcomes will also serve as a barometer for market sentiment, interest rate expectations, and the broader fiscal trajectory.
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