The State Bank of Pakistan has invited bids for the buyback of Pakistan Investment Bonds Floating Rate, with a total target range of Rs500 billion to Rs600 billion. The buyback auction is scheduled for September 10, 2026, as the central bank moves to conduct transactions involving six floating-rate Pakistan Investment Bond securities carrying different issue and maturity dates. The State Bank of Pakistan has set individual target ranges for each security included in the auction.
According to a notification issued by the State Bank of Pakistan’s Domestic Markets and Monetary Management Department, both competitive and non-competitive auctions for the Pakistan Investment Bonds Floating Rate buyback will be conducted on September 10. The settlement of successful bids is scheduled for September 11, 2026. The bidding process through the Pakistan Real-time Interbank Settlement Mechanism Plus will remain open from 10:00 AM to 12:00 PM for both categories of bids.
The auction covers six Pakistan Investment Bonds Floating Rate semi-annual securities issued between April 2023 and June 2024. The first security, issued on April 6, 2023, carries a maturity date of April 6, 2028, with International Securities Identification Number PK05L0604280. The State Bank of Pakistan has assigned this security a target buyback range of Rs100 billion to Rs150 billion. The second security was issued on August 10, 2023, and will mature on August 10, 2028, carrying International Securities Identification Number PK05L1008283 and a target range of Rs50 billion to Rs100 billion.
The third security included in the auction was issued on September 21, 2023, and has a maturity date of September 21, 2028. It carries International Securities Identification Number PK05L2109288, with the central bank setting a target buyback range of Rs100 billion to Rs150 billion. Another security, issued on October 19, 2023, is scheduled to mature on October 19, 2028. This bond carries International Securities Identification Number PK05L1910280 and has also been assigned a target range of Rs100 billion to Rs150 billion.
The fifth Pakistan Investment Bonds Floating Rate security covered by the buyback was issued on April 18, 2024, with a maturity date of April 18, 2029. It carries International Securities Identification Number PK05L1804293, and its target buyback range has been set between Rs100 billion and Rs150 billion. The sixth and final security was issued on June 27, 2024, and is due to mature on June 27, 2029. Its International Securities Identification Number is PK05L2706299, while the target range for the buyback is Rs100 billion to Rs150 billion.
The combined target ranges for the six securities provide the State Bank of Pakistan with flexibility to conduct the buyback within the overall targeted range of Rs500 billion to Rs600 billion. The inclusion of securities with different maturity dates and issue dates allows the auction to cover a range of Pakistan Investment Bonds Floating Rate instruments currently outstanding in the market. Market participants will submit their bids during the specified window, after which the State Bank of Pakistan will proceed according to the auction mechanism outlined in its notification.
The buyback auction is part of the State Bank of Pakistan’s operations in the domestic debt market and involves government securities carrying floating rates and semi-annual structures. By setting separate target ranges for each eligible security, the central bank has provided market participants with details of the securities and volumes being targeted. The auction process will involve both competitive and non-competitive participation, with bids submitted electronically through the Pakistan Real-time Interbank Settlement Mechanism Plus before the 12:00 PM deadline.
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