The State Bank of Pakistan has raised Rs859.882 billion in face value through an auction of Fixed Rate Pakistan Investment Bonds, with the settlement date set for August 5, 2026. The auction attracted total face value bids of Rs1.520 trillion across five different maturities, reflecting substantial investor participation in government securities. The State Bank of Pakistan accepted bids across the three year, five year, 10 year and 15 year tenors, while all bids submitted for the two year tenor were rejected. The latest auction forms part of the government’s domestic financing programme through market based government securities.
The State Bank of Pakistan had invited tenders for five categories of Fixed Rate Pakistan Investment Bonds, comprising two year Zero Coupon, three year, five year, 10 year and 15 year Zero Coupon securities. Investors submitted bids across all five maturities, with the total amount of face value bids reaching Rs1,520.577 billion. The 15 year tenor attracted the highest level of participation at Rs405 billion, followed closely by the five year tenor with Rs403.78 billion. The three year tenor received Rs275.579 billion in bids, while the 10 year tenor attracted Rs253.717 billion. The two year tenor recorded the lowest participation among the five maturities at Rs182.501 billion.
Of the total amount raised in the auction, Rs789.300 billion came through competitive bids. The 15 year Pakistan Investment Bond accounted for the largest portion of competitive acceptance, with the State Bank of Pakistan accepting Rs400 billion at a cut off yield of 12.4850 percent and a cut off price of 17.1230. The strong acceptance for the longest maturity indicates substantial investor participation in longer dated government securities. The weighted average yield for the 15 year tenor stood at 12.45 percent, compared with the 12.49 percent cut off yield.
The 10 year tenor followed with Rs155.467 billion accepted through competitive bids at a cut off yield of 12.3000 percent. Its weighted average yield stood at 12.20 percent. The five year tenor secured Rs136.255 billion in competitive acceptance at a cut off yield of 11.8000 percent and a weighted average yield of 11.75 percent. The three year tenor received competitive acceptance of Rs97.578 billion at a cut off yield of 11.7450 percent, with the weighted average yield standing at 11.65 percent. In contrast, all competitive bids for the two year tenor were rejected by the central bank.
The auction also included non competitive bids, through which an additional Rs70.583 billion was accepted. The five year tenor accounted for Rs42.283 billion of the non competitive acceptance, while the three year tenor contributed Rs25.909 billion. A further Rs2.390 billion was accepted for the 10 year tenor, while the 15 year tenor recorded a marginal Rs0.001 billion in non competitive acceptance. No amount was raised through short selling during the auction, leaving competitive and non competitive bids as the sources of the total accepted amount.
When competitive and non competitive bids are combined, total acceptance reached Rs859.882 billion in face value terms. The three year tenor accounted for Rs123.487 billion, comprising its competitive and non competitive acceptance. The five year tenor recorded total acceptance of Rs178.538 billion, while the 10 year tenor reached Rs157.857 billion. The 15 year tenor accounted for the largest overall acceptance at Rs400.001 billion. The two year tenor remained without any accepted amount after all bids were rejected.
The auction results show that investor demand was particularly concentrated in longer maturity government securities. Although the five year and 15 year tenors received the highest levels of overall bidding, the 15 year instrument secured the largest amount of accepted bids by a considerable margin. The government’s decision to accept Rs400 billion through competitive bids for the 15 year tenor was the largest single acceptance in the auction and represented a significant portion of the total funds raised.
The difference between the total amount of bids received and the amount accepted also indicates that the State Bank of Pakistan maintained selectivity during the auction. Investors offered Rs1.520 trillion across the five maturities, while the central bank accepted Rs859.882 billion. The rejection of all two year bids further demonstrates that the central bank did not accept offers across every maturity despite receiving substantial interest from investors.
The latest auction provides another indication of activity in Pakistan’s domestic government securities market, where Pakistan Investment Bonds remain an important instrument for government financing. The range of maturities offered in the auction allows investors to position funds across different time horizons, while the government can access financing through securities with varying repayment periods.
The Rs859.882 billion raised through the auction will be settled on August 5, 2026. With the largest acceptance coming from the 15 year tenor and significant participation also recorded in the five year and 10 year securities, the results highlight continued investor appetite for government backed fixed rate instruments. At the same time, the rejection of the two year bids shows that demand alone did not result in acceptance, as the central bank continued to determine which offers met the required conditions for the latest government securities auction.
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