The federal government on Wednesday raised Rs 491 billion through the auction of short-term government securities, exceeding its Rs 400 billion target by Rs 91 billion to meet pressing financial requirements.
The State Bank of Pakistan (SBP) conducted the sale of 1-month, 3-month, 6-month, and 12-month Government of Pakistan Market Treasury Bills (MTBs) through Primary Dealers, with settlement scheduled for September 4, 2025.
Bids totalling Rs 1.414 trillion were received, with the highest interest in 1-month MTBs at Rs 574.864 billion. Banks also placed significant bids for 12-month MTBs, amounting to Rs 368.207 billion, as falling interest rates make longer-term deposits attractive. Bids for 3-month and 6-month MTBs reached Rs 310.111 billion and Rs 161.126 billion, respectively.
Out of the total bids, SBP accepted Rs 491 billion, including Rs 382.99 billion in competitive bids and Rs 108.117 billion in non-competitive bids. The government raised Rs 125.632 billion from 1-month MTBs, Rs 171.66 billion from 3-month bills, Rs 43.58 billion from 6-month MTBs, and Rs 150.22 billion from 12-month MTBs.
In addition, SBP conducted an auction for long-term investment bonds, raising Rs 36.774 billion through 10-year Pakistan Investment Bonds (PIBs) with floating semi-annual rates. Total bids for the PIBs reached Rs 444 billion, of which Rs 28 billion in competitive and Rs 8.744 billion in non-competitive bids were accepted.
The SBP’s recent monetary policy statement highlighted that revised fiscal estimates for FY25 show an improved position, with primary and overall fiscal balances exceeding targets. For FY26, the federal government is aiming for further fiscal consolidation, targeting a primary surplus of 2.4 percent of GDP.
