ISLAMABAD – The federal government is aiming to raise Rs5.75 trillion from domestic markets during the three-month period of May to July 2025 through the auction of Market Treasury Bills (MTBs), Fixed-Rate Pakistan Investment Bonds (PIBs), and Floating-Rate PIBs, according to the latest auction calendar released by the State Bank of Pakistan (SBP).
As per the breakdown, Rs2.6 trillion is expected to be mobilised through short-term MTBs, while Rs2.5 trillion is targeted via long-term PIBs—Rs900 billion through fixed-rate instruments and Rs1.6 trillion from semi-annual floating-rate bonds.
To meet the MTB target, the SBP will conduct six auctions over the quarter. Two auctions are scheduled for May: one on the 14th with a target of Rs850 billion and another on May 27 with a Rs650 billion target. For June, two more MTB auctions will be held on June 11 and June 25, each targeting Rs500 billion.
In the PIB category, fixed-rate bonds will be issued through three auctions of Rs300 billion each. The SBP recently revised coupon rates for these instruments, reducing them significantly. The updated rates effective from January 16, 2025, show the 3-year, 5-year, and 10-year bonds now carry a coupon of 12%, compared to the previous rates of 14% for the 3- and 5-year tenors and 13% for the 10-year bond, issued on September 20, 2024. Notably, the 2-year and 15-year bonds currently offer zero coupon.
For floating-rate PIBs, six auctions have been planned, targeting Rs1.6 trillion. These semi-annual bonds, issued on April 17, carry a uniform coupon rate of 11.923% for the 2-, 3-, 5-, 10-, and 15-year tenors.
The large-scale domestic borrowing plan underscores the government’s reliance on local debt markets to bridge its fiscal gap and finance maturing obligations amid constrained external financing and ongoing discussions with the IMF.
