The State Bank of Pakistan (SBP) has outlined an ambitious domestic borrowing plan, with the government targeting to raise around Rs5.1 trillion during the three-month period from February to April 2026 through auctions of Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs). The plan was disclosed through the auction calendars released by the central bank, detailing the government’s financing strategy for the final quarter of the current fiscal cycle segment.
According to the breakup of the borrowing target, the bulk of the funds will be raised through short-term instruments, with Rs3.35 trillion planned via MTBs. In addition, Rs1.35tr is targeted through PIBs with fixed rates, while Rs400 billion is expected to be mobilized through PIBs floating-rate instruments. Combined, these instruments bring the total planned borrowing for the February–April 2026 period to Rs5.1tr, underscoring the government’s continued reliance on domestic debt markets to meet its financing requirements.
To achieve the MTB target, SBP has scheduled seven auctions over the next three months. In February 2026, two MTB auctions are planned. The first auction will be held on February 4 with a target of Rs650bn, followed by a second auction on February 18 carrying a target of Rs450bn. These auctions are expected to attract strong participation from banks amid evolving interest rate expectations.
March 2026 will also see two MTB auctions. The first is scheduled for March 4 with a target of Rs350bn, while the second will take place on March 16 with a target of Rs300bn. The pace of borrowing is set to accelerate in April, with three MTB auctions planned during the month. The first auction will be conducted on April 1 with a target of Rs400bn, followed by a significantly larger auction on April 15 targeting Rs800bn. The final MTB auction of the quarter is scheduled for April 29 with a target of Rs400bn.
Alongside short-term borrowing, SBP aims to raise Rs1.75tr through the sale of Pakistan Investment Bonds during the same period. This includes Rs1.35tr through fixed-rate PIBs and Rs400bn through semiannual floating-rate PIBs. For fixed-rate bonds, three auctions are planned during the quarter, each with a target of Rs450bn. These auctions are scheduled for February 6, March 11, and April 8, providing investors with medium- to long-term investment options.
The fixed-rate PIBs on offer span multiple maturities, including 2-year, 3-year, 5-year, 10-year, and 15-year tenors. The 2-year and 15-year bonds carry zero coupon rates, while the 3-year, 5-year, and 10-year bonds offer coupon rates of 10.25%, 10.50%, and 11.00%, respectively. All these bonds were issued on January 15, 2026.
For floating-rate instruments, SBP has planned seven auctions of semiannual PIBs. The 10-year floating-rate PIB, issued on January 8, 2026, carries a coupon rate of 10.4639%, offering investors protection against interest rate volatility.
Overall, the auction calendar reflects the government’s continued focus on managing its financing needs through a mix of short-term and long-term domestic instruments. The scale and structure of the planned borrowing will be closely watched by market participants, as it carries implications for liquidity conditions, interest rate trends, and the broader monetary policy outlook in the coming months.
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