In a strategic move to modernize and digitize its financial infrastructure, the State Bank of Pakistan (SBP) has announced that it will conduct auctions of government securities, buyback operations, and conventional open market operations (OMOs) through the newly upgraded PRISM+ platform beginning next month. The development was confirmed through an official circular issued by the central bank.
As part of this transition, all auctions for Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs), including buyback auctions, will be carried out exclusively via PRISM+, which is SBP’s enhanced payment and settlement platform. This marks a significant shift from the previous hybrid systems and represents an effort to consolidate major monetary tools under one digital umbrella.
The SBP’s latest update also clarifies that while conventional OMOs (both injections and mop-ups) will now be facilitated through PRISM+, Shariah-compliant OMOs and Bai Muajjal transactions will continue to operate under the existing procedural framework. The transition aims to streamline participation, automate pricing, and improve settlement efficiency in government debt markets.
Under the new guidelines, all eligible market participants will be required to submit their bids directly on the PRISM+ platform. Each bid must be tagged with one or more government securities, and the face value of the bid will be considered equal to the combined face value of the attached securities. PRISM+ will automatically calculate the realized value of these securities based on applicable revaluation rates, current market prices, and haircut adjustments.
In cases where multiple securities are tagged with a single bid, the allocation will follow a pro-rata methodology. The system will prioritize the securities with the shortest remaining maturity for allocation in such scenarios, ensuring fair and transparent settlement mechanisms.
Additionally, the SBP announced that its Conventional Reverse Repo (Ceiling) and Repo (Floor) facilities will now be offered via the new TMON/X platform. However, Shariah-compliant liquidity management tools will remain operational through the previously established processes.
PRISM+ is also being positioned as a versatile platform for the secondary market. It will support both outright and repo-based trading of government securities held in custody with the central bank. Moreover, the system includes a facility for “when-issued” trading of fixed-coupon PIBs ahead of formal auctions—an important feature that will enhance price discovery and market depth.
Market participants, including commercial banks, DFIs, and primary dealers, are strongly encouraged to fully transition to the PRISM+ system for all future trading and auction activities involving government securities. This shift is expected to improve efficiency, reduce operational risk, and enhance transparency in the handling of public debt instruments.
The State Bank’s broader push for digital modernization continues to align with global best practices in financial infrastructure. By centralizing auction operations and promoting an integrated trading environment, the move is poised to strengthen Pakistan’s debt capital market and support better liquidity management across the banking system.