Pakistan raises PKR 427.13 billion in PIB auction exceeding target

The Pakistani government raised PKR 427.13 billion ($1.53 billion) in a fixed-rate Pakistan Investment Bond (PIB) auction, surpassing its target of PKR 350 billion, the State Bank of Pakistan said Wednesday.

Cut-off yields remained largely unchanged, with the two-year bond at 11.94%, the three-year at 11.88%, and the five-year at 12.34%, down 3 basis points. The 10-year bond held steady at 12.79%.

The government aims to borrow PKR 5.75 trillion ($20.6 billion) from April to June 2025 through treasury bills and bonds. Of this, PKR 3.65 trillion will be raised through Market Treasury Bills (MTBs), while PKR 2.1 trillion will come from PIBs, including fixed-rate and semi-annual floating-rate bonds.

The central bank plans seven MTB auctions in the quarter, including two in April—targeting PKR 850 billion on April 16 and PKR 400 billion on April 30. Two more auctions are scheduled for May (PKR 450 billion on May 14 and PKR 550 billion on May 27) and June (PKR 700 billion on June 11 and 25).

For PIBs, the State Bank will hold three fixed-rate bond auctions, each targeting PKR 350 billion, alongside floating-rate bond sales aiming for PKR 1.15 trillion.

The borrowing plan is part of the government’s strategy to manage fiscal needs amid economic reforms.