The State Bank of Pakistan (SBP) successfully raised Rs977.19 billion through its recent treasury bills (T-Bills) and Pakistan Investment Bonds (PIB) auctions, reflecting sustained government borrowing from the domestic market to meet fiscal and liquidity requirements. The combined acceptance highlights the continued reliance on debt instruments to fund short- and medium-term financing needs while offering investment avenues to banks and institutional investors.
The SBP conducted Market Treasury Bills auctions across four tenors, attracting total bids worth Rs1.49 trillion in face value. Out of these bids, the central bank accepted Rs730.44 billion, including non-competitive bids. The weighted average yields for accepted bids ranged from 10.82% for six-month bills to 11.13% for twelve-month bills, signaling the prevailing interest rate environment in Pakistan’s money market. Cut-off yields ranged between 11.05% and 11.19%, reflecting strong investor demand despite elevated borrowing rates.
Among the tenors, twelve-month bills accounted for the highest acceptance at Rs243.35 billion, followed by one-month bills at Rs318.42 billion. The three-month and six-month bills attracted Rs56.23 billion and Rs112.44 billion, respectively, demonstrating a balanced appetite across short- and medium-term instruments. These results indicate that domestic investors continue to participate actively in government securities auctions, contributing to liquidity management and the broader financing of fiscal requirements.
In a separate auction, the SBP offered 10-year Pakistan Investment Bonds with a floating rate structure. The auction received bids totaling Rs394 billion, of which Rs246.75 billion in face value was accepted. This included Rs244 billion in competitive bids and Rs2.75 billion in non-competitive bids. The cut-off price for the auction was set at 94.5465, with bid prices ranging from 93.73 to 95.15. The total realized amount, including accrued interest of Rs6.07 billion, stood at Rs237.13 billion.
The acceptance of over Rs977 billion in total across both T-Bills and PIB auctions underscores the government’s reliance on domestic borrowing to manage fiscal requirements while providing robust opportunities for banks, financial institutions, and other investors to participate in government debt instruments. Analysts note that these auctions also help benchmark domestic interest rates, providing clarity for the pricing of private sector credit and investment products.
The settlement date for both auctions is scheduled for October 2, 2025, following standard procedures for transfer of funds and securities to successful bidders. Market observers expect continued active participation in upcoming auctions, driven by institutional appetite and the broader need for secure investment avenues in the domestic market.
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