The State Bank of Pakistan (SBP) has issued updated operational guidelines for the buyback of government securities, revising auction procedures for Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs). The new framework, detailed in DMMD Circular No. 02 of 2025, will replace previous instructions issued in 2024.
Under the revised mechanism, SBP will conduct auctions for the buyback of government securities, including Zero Coupon, Fixed, and Floater PIBs, on behalf of the Government of Pakistan. The central bank will publish auction details, including security types, target amounts, and schedules, on Refinitiv, Bloomberg, and the SBP website.
All Primary Dealers can submit competitive bids, while non-competitive bids will also be accepted under existing rules.Â
Bidding will be conducted via the Bloomberg Auction Module (AUPD), requiring participants to submit bid prices per Rs.100 of face value up to four decimal places, along with the amount (face value) of securities they intend to offer.
Upon settlement, the acquired securities will be deducted from the SGLA (Subsidiary General Ledger Account) of successful bidders, with their current accounts credited accordingly. The SBP has also reaffirmed that all other auction rules and procedures outlined in prior circulars will continue to apply.
The move aims to enhance liquidity management and market efficiency in the government securities sector while ensuring transparency and competitiveness in the auction process.
