The State Bank of Pakistan (SBP) has announced the process of commencement of the buyback for Market Treasury Bills (MTBs) in accordance with the 1998 MTB Rules, as part of a strategy to manage government securities.
According to a notification, the SBP will act on behalf of the Government of Pakistan to conduct auctions for the buyback of MTBs, with the details of security, target amounts, auction schedules, and results to be made public through platforms such as Refinitiv, Bloomberg, SBPK pages, and the SBP’s official website.
The buyback price of the security will be determined through multiple-price competitive auction processes. All Primary Dealers will be eligible to submit competitive bids in the auctions. Non-competitive bids can also be submitted as per existing instructions.
Bidders are required to submit their offers through the Bloomberg Auction Module, specifying both the bid price (per Rs.100 of face value) up to four decimal points and the amount of securities for buyback.
Upon successful completion of the auctions, the securities will be debited from the SGLA accounts of the winning bidders, while their current accounts will be credited with the corresponding payment. All relevant auction rules and procedures will remain applicable throughout the process.
