The government secured Rs584.5 billion through the auction of Treasury Bills (T-Bills), Pakistan Investment Bonds (PIBs), and Government Islamic Sukuk (GIS). This included Rs434 billion from T-Bills, Rs11.9 billion from PIBs, and Rs138 billion from the GIS auction across all tenors.
The GIS auction, conducted by the Pakistan Stock Exchange (PSX), attracted robust participation, with total bids reaching Rs536 billion—more than double the Rs250 billion target, according to Arif Habib Limited (AHL).Â
The government raised Rs138 billion, predominantly from the 10-year Variable Rate Rental (VRR) Sukuk. Yields on Fixed Rate Rental (FRR) Sukuk dropped marginally by 1 to 6 basis points compared to the previous auction.
In the T-Bill auction, the State Bank of Pakistan (SBP) raised Rs434 billion, surpassing its Rs250 billion target. Yields for 3-month, 6-month, and 12-month T-Bills fell to multi-year lows of 11.7848%, 11.7899%, and 11.8004%, respectively, representing declines of 22 to 50 basis points. Total bids for T-Bills amounted to Rs1,552 billion, significantly exceeding the auction target.
The SBP also raised Rs104 billion as a non-bidding amount, totaling the total borrowing to Rs434.15 billion.
The government raised Rs8 billion through the auction of Pakistan Investment Bonds (PIBs) against total bids of Rs775.2 billion, maintaining a cautious borrowing approach. An additional Rs3.86 billion was secured through non-competitive bidding, bringing the total to Rs11.86 billion.
PIBs and Treasury Bills (T-Bills) are key tools for government fundraising. PIBs are long-term debt instruments with maturities ranging from three to 20 years, offering fixed interest rates and catering to investors seeking stable, long-term returns.
In contrast, T-Bills are short-term securities with three, six, or 12-month maturities, issued at a discount to face value and redeemed at par, making them a secure option for quick investments.
