The State Bank of Pakistan (SBP) has unveiled its auction calendar for September to November 2025, setting an ambitious target to raise Rs4.825 trillion through the issuance of Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs). The plan reflects the government’s continued reliance on domestic borrowing to manage fiscal needs while aiming to maintain liquidity and stability in financial markets.
Breaking down the target, Rs2.875 trillion is planned to be raised via short-term MTBs, while longer-term financing will come from Rs1.2 trillion through fixed-rate PIBs and Rs750 billion through floating-rate PIBs. This structured approach highlights the government’s attempt to balance short-term cash flow requirements with long-term funding commitments.
To meet the MTB target, SBP has scheduled seven auctions across the three-month period. September will see two auctions, with Rs400 billion set for September 3 and Rs175 billion on September 17. In October, three auctions are lined up, beginning with Rs700 billion on October 1, followed by Rs500 billion on October 15, and Rs700 billion again on October 29. November will conclude the MTB schedule with two auctions, each targeting Rs200 billion, on November 12 and November 26.
For PIBs, the SBP plans to raise Rs1.95 trillion, split between fixed-rate and floating-rate bonds. The fixed-rate portion, totaling Rs1.2 trillion, will be issued across three auctions of Rs400 billion each, set for September 5, October 14, and November 5. Coupon rates for these securities vary by maturity, with three-year PIBs carrying 10.5 percent, five-year bonds at 11 percent, and 10-year securities offering 11.5 percent. Meanwhile, the two-year and 15-year instruments will be issued as zero-coupon bonds.
The floating-rate PIBs, amounting to Rs750 billion, will be issued through seven auctions over the quarter. These semiannual floaters are tied to the six-month benchmark and are designed to attract investors looking for returns linked to market rates. The 10-year PIB issued on July 10, 2025, for instance, carries a coupon rate of 10.8974 percent, setting the benchmark for future offerings.
The borrowing program comes at a time when fiscal pressures remain high, with debt servicing constituting a significant portion of government expenditure. Analysts note that the reliance on both MTBs and PIBs reflects the state’s strategy of diversifying its borrowing instruments to manage repayment risks while ensuring a stable yield curve.
Market participants are expected to closely monitor the auctions, as the volumes being raised could influence liquidity conditions and impact secondary market yields. Investors, particularly banks and institutional players, will be key participants given their role in financing government debt. The move also signals the government’s intent to ensure a predictable funding stream while aligning with broader monetary and fiscal policies.
The SBP’s calendar provides clarity to financial markets, offering transparency in the government’s borrowing strategy over the next three months. However, much will depend on demand dynamics, investor appetite, and external conditions that could affect Pakistan’s broader financial landscape.
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