The State Bank of Pakistan has announced an ambitious plan to raise over Rs5.5 trillion during the first quarter of fiscal year 2025-26 through the auction of Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs). This substantial funding target, laid out in SBP’s recently released auction calendar for July to September 2025, highlights the scale of the government’s financing needs amid ongoing efforts to stabilize fiscal operations and support market liquidity.
According to the detailed breakup provided by the central bank, the government aims to mobilize Rs3.175 trillion by issuing MTBs, Rs1,000 billion through PIBs at fixed rates, and another Rs1,400 billion via floating-rate PIBs. Altogether, these auctions are designed to secure Rs5.575 trillion in the three-month period.
SBP plans an active auction schedule to meet this target, with six separate MTB auctions slated over the quarter. In July, the central bank will conduct two auctions: the first on July 10 with a hefty target of Rs1,350 billion, followed by another on July 24 aiming to raise Rs200 billion. For August, two more auctions are lined up: one on August 7 with a target of Rs350 billion, and a second on August 21 aiming for Rs450 billion. The calendar wraps up with two MTB auctions in September — Rs600 billion on September 4 and Rs225 billion on September 18.
On the bond side, SBP intends to secure Rs2.4 trillion through PIBs, split between fixed and floating rates. The fixed-rate segment will see three auctions this quarter: two with targets of Rs300 billion each scheduled for July 9 and July 25, and a final auction on August 28 with a target of Rs400 billion.
Meanwhile, to attract investors and adjust to prevailing market dynamics, SBP has revised the coupon rates on its fixed-rate PIBs effective from July 16, 2025. In addition, six auctions have been planned for semiannual floating-rate PIBs during this quarter, with notable activity around the 10-year tenor instruments. The 10-year floating PIB issued on July 10, 2025, carries a coupon rate set at 10.90 percent, reflecting current returns in the debt market.
This aggressive borrowing calendar underscores the government’s broader fiscal strategy, balancing debt rollover with new financing to sustain development expenditure and service existing obligations. The volumes also illustrate SBP’s dual focus on liquidity management and maintaining stability in the local debt market.
Market participants — including commercial banks, institutional investors, and asset managers — are expected to engage actively in these auctions, drawn by the relatively attractive yields and the predictable schedule. The issuance of both fixed and floating instruments also offers investors diversified exposure, catering to different interest rate outlooks.
As Pakistan navigates through external pressures and seeks to anchor domestic confidence, these funding operations play a critical role in underpinning fiscal operations. They also help the central bank in shaping the yield curve, guiding broader credit conditions in the economy.
The coming months will test the market’s capacity to absorb this sizeable volume, but with well-structured instruments and transparent scheduling, the SBP aims to ensure a smooth execution that aligns with its monetary and liquidity objectives. This structured approach is also expected to bolster investor trust in Pakistan’s debt management framework, a key aspect as the country continues its efforts to strengthen macroeconomic fundamentals.