The State Bank of Pakistan (SBP) has announced its auction calendar for the fourth quarter of 2025, setting an ambitious target of raising Rs6.5 trillion between October and December. The funds will be mobilized through Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs), reflecting the government’s financing needs amid ongoing fiscal pressures.
According to the SBP’s breakdown, the government plans to raise Rs4.35 trillion through MTBs, Rs1.25 trillion via PIBs at fixed rates, and Rs900 billion through PIBs at floating rates during this three-month period. This mix of short-term and long-term debt instruments highlights efforts to balance immediate liquidity requirements with sustainable debt management strategies.
For MTBs, the central bank has scheduled seven auctions across the quarter. In October, three auctions are planned: the first on October 1 targeting Rs750 billion, the second on October 15 with another Rs750 billion target, and the third on October 29 with Rs800 billion. In November, two auctions will take place, with Rs350 billion to be raised on November 12 and Rs500 billion on November 26. The calendar concludes with two auctions in December, one on December 10 for Rs800 billion and another on December 24 for Rs400 billion.
Meanwhile, the SBP also aims to secure Rs2.15 trillion from PIBs. Of this, Rs1.25 trillion is expected from fixed-rate instruments, while Rs900 billion will come from semiannual floating-rate bonds. Three fixed-rate auctions are scheduled, with Rs450 billion on October 14, Rs400 billion on November 5, and Rs400 billion on December 17.
The PIBs on offer span various maturities, ranging from two-year to fifteen-year tenors, with coupon rates reflecting prevailing market dynamics. For example, the three-year PIB carries a rate of 10.50 percent, the five-year bond offers 11 percent, while the ten-year instrument stands at 11.50 percent. Semiannual floaters, such as the 10-year PIB issued in July 2025, have a coupon rate of 10.8974 percent, providing flexibility in managing interest rate fluctuations.
Analysts note that the auction calendar underscores the government’s reliance on domestic borrowing to finance its budgetary needs. With global financing conditions tight and external debt servicing obligations rising, Pakistan has leaned heavily on local capital markets. The planned Rs6.5 trillion mobilization is seen as a way to manage fiscal requirements while also rolling over maturing debt.
The auction strategy also reflects efforts by the SBP to strike a balance between short-term borrowing through MTBs and longer-term commitments via PIBs. While MTBs provide quick liquidity, PIBs allow the government to lock in funding at predetermined rates, reducing exposure to volatility in interest rates.
Market participants will be closely watching the demand for both instruments, as investor appetite is influenced by inflation trends, monetary policy outlook, and overall economic stability. Given Pakistan’s focus on controlling inflation and maintaining currency stability, the SBP’s debt-raising activities will be a key factor shaping financial markets in the final quarter of the year.
The Rs6.5 trillion target for October–December 2025 is one of the largest quarterly borrowing plans in recent years, underscoring the scale of fiscal challenges the country faces. With auctions spread strategically across the quarter, the SBP aims to ensure a steady inflow of funds to meet government obligations without disrupting liquidity in the banking system.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.