Pakistan’s central bank sells treasury bills worth PKR 392 billion

The State Bank of Pakistan (SBP) raised PKR 392 billion ($1.4 billion) in a T-bill auction on Wednesday, falling short of its PKR 800 billion target and PKR 513 billion maturity.

Yields remained steady except for 12-month T-bills, which saw a 26 basis point increase. One-month yields held at 12.05%, three-month yields at 11.82%, and six-month yields remained unchanged at 11.7%.

Additionally, the SBP sold floating-rate Pakistan Investment Bonds (PIBs) worth PKR 762.3 billion. Five-year PIBs raised PKR 37.5 billion, while 10-year bonds brought in PKR 724.8 billion. Bids for two-year bonds were rejected.

The central bank also conducted a buy-back of floating-rate PIBs worth PKR 156.4 billion.

The government plans to sell PKR 6,750 billion in treasury bills and investment bonds between March and May to address rising debt levels.

Pakistan's federal debt surged by over PKR 3,200 billion in the first seven months of fiscal year 2024-25, driven by domestic borrowing to bridge the fiscal deficit.

By January 2025, the country's total debt stock reached PKR 72,123 billion, up from PKR 68,914 billion in June 2024, with domestic borrowing climbing 6.5%.