The State Bank of Pakistan (SBP) has unveiled its auction calendar for March to May 2026, establishing a cumulative borrowing target of Rs6.525 trillion through a combination of Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs). The announcement reflects the government’s continued reliance on domestic debt markets to meet fiscal obligations while managing significant refinancing requirements in the upcoming quarter. According to the SBP’s Domestic Markets and Monetary Management Department, Rs5 trillion is planned to be mobilized through short-term MTBs, while Rs1.525 trillion will be raised through longer-term PIBs, highlighting the scale of funding operations needed to manage both maturing debt and ongoing liquidity needs.
MTB maturities during the March–May 2026 period are projected at Rs4.259 trillion, including Rs1.204 trillion held by provincial governments. To manage this profile, the SBP has set a gross target of Rs5 trillion, providing a net borrowing cushion that allows for refinancing maturing bills as well as meeting additional funding requirements. The MTB schedule is diversified across several tenors, with Rs1.1 trillion allocated to one-month bills, Rs1.4 trillion to three-month papers, Rs950 billion to six-month bills, and Rs1.55 trillion in 12-month instruments. The largest individual MTB auction, valued at Rs1 trillion, is scheduled for April 30, 2026, demonstrating the central bank’s approach to smoothing liquidity pressures and managing market expectations effectively.
For long-term financing, the SBP has announced Rs1.35 trillion in fixed-rate PIBs across two-, three-, five-, 10-, and 15-year tenors. These auctions are scheduled with Rs400 billion on March 26, Rs450 billion on April 20, and Rs500 billion on May 5. Additionally, Rs175 billion will be raised through 10-year PIBs, issued on January 8, 2026, with a coupon rate of 10.4639 percent, through seven separate auctions of Rs25 billion each from March 4 to May 20. This structured approach ensures continuous participation of investors in the domestic bond market, while supporting the government’s objectives of maintaining liquidity and refinancing maturing obligations efficiently.
The auction calendar underscores the government’s strategy to manage both short-term and long-term debt obligations while stabilizing the domestic financial market. By setting explicit targets for MTBs and PIBs, the SBP signals its intention to maintain investor confidence and market transparency. The staggered schedule of auctions allows market participants to plan portfolio allocations accurately, supporting orderly participation in government securities.
This comprehensive borrowing plan also reflects broader fiscal management objectives, including the refinancing of maturing debt and minimizing disruptions in liquidity. By focusing on both MTBs and PIBs, the SBP aims to balance immediate fiscal pressures with long-term financing stability. Analysts and investors are likely to interpret the calendar as an indication of ongoing government borrowing needs as well as the central bank’s commitment to ensuring a smooth functioning domestic debt market in Pakistan during the final quarter of FY2025-26. The plan highlights how structured issuance and clear communication can help maintain stability and predictability in the country’s financial markets while meeting substantial financing requirements.
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