The State Bank of Pakistan has set a government borrowing target of Rs5 trillion for the three-month period from September to November 2026 through auctions of Market Treasury Bills and Fixed-Rate Pakistan Investment Bonds. According to the auction calendars released by the central bank, the government plans to raise Rs3.85 trillion through Market Treasury Bills during the period, while another Rs1.15 trillion is targeted through Fixed-Rate Pakistan Investment Bonds. The borrowing programme outlines the government’s planned financing through short- and longer-term securities over the three months.
The largest portion of the planned borrowing will come through Market Treasury Bills, with the State Bank of Pakistan scheduled to conduct seven auctions between September and November. Three auctions are scheduled for September, followed by two each in October and November. The September auctions carry targets of Rs800 billion on September 2, Rs150 billion on September 16 and Rs700 billion on September 30. In October, the central bank plans to target Rs700 billion through the October 14 auction and Rs900 billion through the October 28 auction. The final two auctions under the three-month calendar are scheduled for November 11 and November 25, carrying targets of Rs400 billion and Rs200 billion, respectively.
Against the Market Treasury Bill auctions, a total of Rs4.791 trillion in bills is scheduled to mature during the period. Of this amount, Rs1.345 trillion is attributed to provincial governments. Provincial governments are also expected to invest Rs275 billion through the scheduled auctions. The maturity profile and auction targets indicate that a significant portion of the planned borrowing will be used within the existing government securities market as maturing instruments are replaced and new financing is raised.
The Market Treasury Bills offered under the auction calendar will carry four different tenors: one month, three months, six months and 12 months. The overall Rs3.85 trillion MTB target has been divided across these maturities according to the State Bank’s calendar. One-month bills account for Rs675 billion of the target, while three-month bills carry a target of Rs1.025 trillion. Six-month bills account for Rs1 trillion, while the 12-month tenor has been assigned the largest individual target of Rs1.15 trillion.
The tenor-wise schedule shows that the government plans to raise Rs800 billion through the September 3 settlement, including Rs100 billion through one-month bills, Rs200 billion through three-month bills, Rs200 billion through six-month bills and Rs300 billion through 12-month bills. The September 17 settlement carries a total target of Rs150 billion, while the October 1 and October 15 settlements carry targets of Rs700 billion each. The October 29 settlement has the largest target under the detailed schedule at Rs900 billion, followed by Rs400 billion on November 12 and Rs200 billion on November 26.
Alongside the Treasury Bill programme, the State Bank plans to raise Rs1.15 trillion through Fixed-Rate Pakistan Investment Bonds during the quarter. Three auctions are scheduled for these bonds, with a target of Rs250 billion on September 18, Rs450 billion on October 7 and another Rs450 billion on November 4. Unlike some previous borrowing programmes, the auction calendar for this three-month period does not include any auctions for floating-rate Pakistan Investment Bonds.
The Fixed-Rate Pakistan Investment Bond programme covers five tenors, including two-year, three-year, five-year, 10-year and 15-year securities. The securities listed in the calendar carry different coupon structures, with the three-year bond carrying a 12% coupon rate, the five-year bond carrying 12.25% and the 10-year bond carrying 12.50%. The two-year and 15-year securities listed in the schedule carry zero coupon rates.
The tenor-wise PIB target is structured at Rs50 billion for each of the five tenors in September, producing a total target of Rs250 billion for the September 18 auction. The target increases in October, with Rs100 billion assigned to each of the two-year, three-year, five-year and 10-year tenors, while the 15-year tenor carries Rs50 billion, taking the total October target to Rs450 billion. The same structure is planned for the November 4 auction, resulting in another Rs450 billion target.
Taken together, the auction calendars set out a combined Rs5 trillion government borrowing programme for September through November 2026. Market Treasury Bills account for Rs3.85 trillion of the target, while Fixed-Rate Pakistan Investment Bonds make up the remaining Rs1.15 trillion. The schedule provides investors and market participants with advance details of the securities, auction dates, settlement dates and targeted amounts as the government prepares to raise financing through the domestic securities market over the three-month period.
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