The State Bank of Pakistan (SBP) successfully raised Rs792.65 billion through its latest Pakistan Investment Bonds (PIBs) auction held on November 5, 2025, with settlement scheduled for November 6. The auction witnessed robust participation, receiving total bids of Rs1.43 trillion across five different tenors, resulting in an acceptance rate of approximately 55%.
Of the total accepted amount, Rs771.92 billion came from competitive bids, Rs13.23 billion from non-competitive bids, and Rs7.50 billion was accounted for through short selling arrangements. This demonstrates both strong institutional interest and active participation in Pakistan’s government securities market, highlighting the importance of PIBs as a core instrument for portfolio management and fixed-income investment.
The auction was dominated by the 15-year zero-coupon bonds, which accounted for Rs340.01 billion in accepted bids, including Rs340 billion from competitive and Rs10.6 million from non-competitive bids. Following this, 10-year bonds attracted Rs146.55 billion, with Rs144.47 billion in competitive bids and Rs2.08 billion in non-competitive bids.
Shorter-term instruments also saw notable uptake, with the 3-year tenor securing Rs144.84 billion in total acceptance—comprising Rs137.15 billion competitive, Rs2.69 billion non-competitive, and Rs5 billion through short selling arrangements. The 5-year bonds received Rs97.48 billion, and 2-year zero-coupon bonds totaled Rs63.78 billion, demonstrating a balanced appetite across both long- and short-term instruments.
The total realized amount from the auction, including accrued interest, stood at Rs488.77 billion. Yields remained elevated across all tenors, reflecting prevailing market conditions and investor expectations. The weighted average yields ranged from 11.45% for the 2-year bonds to 12.25% for the 15-year instruments, with the 10-year benchmark yielding 11.93%. These yields indicate a cautious but sustained investor interest, balancing return expectations with liquidity considerations.
Analysts note that this auction reflects the ongoing demand for secure, sovereign-backed instruments in Pakistan’s fixed-income market. The dominance of long-term zero-coupon bonds highlights investor focus on predictable, low-risk investment avenues, particularly in an environment where inflation and macroeconomic factors remain key considerations.
The successful execution of this auction underscores SBP’s commitment to maintaining a transparent and efficient government securities market. By providing multiple tenors and accommodating both competitive and non-competitive participation, the central bank continues to facilitate broad-based market engagement, strengthen liquidity, and support fiscal management objectives.
Investors and market participants are expected to closely monitor upcoming auctions and trends in yields, as these indicators provide important signals regarding Pakistan’s interest rate environment, market sentiment, and broader economic conditions.
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