The State Bank of Pakistan has outlined an aggressive domestic borrowing plan as the federal government targets raising approximately Rs5.45 trillion between December 2025 and February 2026 through the auction of Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs), according to the latest auction calendar issued by the central bank.
The borrowing plan reflects the government’s continued reliance on domestic debt markets to manage fiscal requirements and refinance maturing obligations. According to the breakup of the target, authorities aim to raise Rs3.85 trillion through short-term MTBs, Rs1.2 trillion via PIBs with fixed coupon rates, and an additional Rs400 billion through PIBs carrying floating coupon structures. The combined total sets the overall three-month funding target at Rs5.45 trillion.
To meet the MTB borrowing requirement, the central bank has scheduled six separate auctions over the three-month period. In December 2025, two auctions are planned, with the first held on December 10 targeting Rs1,000 billion and the second scheduled for December 24 with a target of Rs600 billion. January 2026 will see two more auctions, the first on January 7 aimed at raising Rs600 billion and the second on January 21 carrying a higher target of Rs700 billion.
Looking ahead to February 2026, two additional MTB auctions are lined up by the central bank. The first will be conducted on February 4, with a target of Rs550 billion, while the second auction is scheduled for February 18, targeting Rs400 billion. These frequent short-term debt auctions highlight the government’s need for continuous liquidity management and rollover of near-term obligations.
In addition to treasury bills, the State Bank of Pakistan also plans to raise Rs1.6 trillion through Pakistan Investment Bonds during the same quarter. This includes Rs1.2 trillion through fixed-rate PIBs and Rs400 billion through semiannual floating-rate PIBs. For the fixed-rate instruments, three auctions are planned, each targeting Rs400 billion, to be held on December 17, 2025, January 14, 2026, and February 6, 2026.
The security structure of the fixed-rate PIBs covers maturities of 2, 3, 5, 10, and 15 years. The two-year and fifteen-year instruments are currently zero-coupon, while the 3-year, 5-year, and 10-year bonds carry coupon rates of 10.50%, 11.00%, and 11.50% respectively. These rates reflect prevailing market expectations around inflation and monetary policy direction.
For the floating-rate segment, the central bank has planned six auctions of semiannual PIB floaters. The existing 10-year floating PIB, issued on July 10, 2025, carries a coupon rate of 10.8974%, which serves as a benchmark for upcoming issuances. Market participants view this borrowing calendar as a key indicator of the government’s short-term liquidity strategy and the evolving dynamics of Pakistan’s domestic debt market.
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