The government raised Rs775.9 billion (face value) from its market Treasury bills auction on Wednesday, with short-term yields showing minor fluctuations, according to the State Bank of Pakistan (SBP).
The auction had a target of Rs750 billion, while maturing T-bills amounted to Rs651 billion. The realized amount reached Rs742 billion, with total participation at Rs1.84 trillion.
Yields on the one-month T-bill fell four basis points (bps) to 11.1104 percent, the three-month paper remained unchanged at 11.0498 percent, and the six-month yield declined by 1bp to 11.0448 percent. Conversely, the 12-month T-bill yield increased by 6bps to 11.2499 percent.
The auction followed the International Monetary Fund (IMF) reaching a staff-level agreement with Pakistan, paving the way for the country to access $1.2 billion once approved by the IMF board.
Pakistan’s consumer price index rose to 5.6 percent in September, reflecting renewed price pressures after months of stability. The SBP has cut interest rates by a cumulative 1,100bps since June 2024, with the last 100bps reduction in May 2025. The next monetary policy decision is scheduled for October 27.
The SBP noted that recent flood-induced supply shocks, especially in the crop sector, may temporarily raise headline inflation and the current account deficit in FY26.
On the same day, the government mobilized an additional Rs157.8 billion from the sale of 10-year floating-rate Pakistan Investment Bonds (PIBs) through competitive and non-competitive bids.
