SBP raises Rs801.7 billion through PIB, T-bill auctions

The State Bank of Pakistan raised a total of Rs801.7 billion through auctions of Pakistan Investment Bonds (floating rate) and Market Treasury Bills on Wednesday, indicating continued reliance on domestic borrowing and ample liquidity in the banking system.

In the Pakistan Investment Bonds (Floating Rate) auction, Rs48.44 billion was mobilised, including accrued interest, against competitive bids for the 10-year tenor. 

The overall accepted amount was slightly higher when non-competitive bids were included, suggesting limited but targeted participation.

The Market Treasury Bills auction accounted for the bulk of the borrowing, with Rs753.26 billion raised across one-, three-, six-, and 12-month tenors. 

Most of the funds were secured through shorter-duration papers, particularly three-month instruments, reflecting investor preference for shorter maturities in a volatile interest rate environment.