The government raised Rs1.2 trillion through the auction of treasury bills (T-bills) and Pakistan Investment Bonds (PIBs) against bids totaling Rs2.207 trillion, with investors largely favoring long-term securities amid expectations of stable interest rates.
In the T-bills auction, the government raised Rs569 billion against a target of Rs700 billion, significantly lower than the maturity amount of Rs946 billion. Investors submitted bids of Rs1.237 trillion for T-bills and Rs970 billion for PIBs.
For T-bills, the government secured Rs398 billion for the three-month tenor at 11.82 percent, Rs49.3 billion for six months at 11.67 percent, and Rs66 billion for 12 months at 11.64 percent.Â
In the PIBs auction, the government raised Rs595 billion for 10-year bonds and Rs25 billion for five-year bonds, rejecting bids for the two-year tenor. The total PIBs issuance, including the non-bidding amount, stood at Rs629.3 billion.
Despite the lower interest rate, banks continue to rely on government securities for risk-free earnings, similar to 2024. Both the government and financial institutions are closely monitoring the outcome of ongoing discussions with the International Monetary Fund (IMF), which could influence future borrowing and monetary policy decisions.
