By Hasnain Ali
The Government of Pakistan has secured over Rs 940 billion in fresh funding through its latest debt auctions, signaling continued investor trust in government-backed securities.
According to the State Bank of Pakistan (SBP), the auctions held on October 1, 2025, raised Rs 696 billion through Market Treasury Bills (MTBs) and Rs 247 billion through Pakistan Investment Bonds (PIBs).
Officials say the results highlight the government’s push to meet short- and medium-term financing needs efficiently.
Treasury Bills Draw Strong Interest
The SBP reported that the Treasury Bill auction attracted heavy participation from banks and institutional investors.
Bids were invited for one-month, three-month, six-month, and twelve-month papers, with total offers reaching Rs 1.43 trillion against a face value of Rs 1.49 trillion.
Out of this, Rs 612.17 billion were accepted as competitive bids, while another Rs 84.11 billion came through non-competitive bids, bringing the final MTB total to Rs 696.28 billion.
The one-month bill saw the biggest investor demand, raising Rs 307.58 billion at a cut-off yield of 11.1502% and a weighted average yield of 11.0915%.
The twelve-month paper also gained strong traction, pulling in Rs 198.79 billion at a cut-off yield of 11.1901% and an average of 11.1264%.
The three-month and six-month bills added Rs 42.44 billion and Rs 63.34 billion, both priced at a cut-off yield of 11.0499%.
Non-competitive bids further boosted the totals, with the six-month paper getting Rs 43.33 billion, twelve-months adding Rs 20.25 billion, three-months bringing in Rs 12.38 billion, and one-month securing Rs 8.14 billion.
Pakistan Investment Bonds Add Long-Term Funding
Alongside Treasury Bills, the SBP also auctioned ten-year floating-rate Pakistan Investment Bonds (PIBs) that pay semi-annual returns.
Investors submitted offers worth Rs 394 billion within a price range of 95.1527 to 93.7286. From this, the SBP accepted Rs 244 billion in face value, which translated into a realized amount of Rs 231.06 billion.
Accrued interest added another Rs 6.07 billion, bringing the PIBs’ realized total to Rs 237.13 billion.
With non-competitive bids of Rs 2.75 billion included, the final PIB acceptance reached Rs 246.75 billion.
Analysts say the results show strong appetite for short-term government debt, particularly in the one-month and twelve-month categories. Investors appear to be betting on monetary stability and the possibility of interest rate cuts in the near future.
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