SBP targets to acquire PKR 500 billion worth of T-Bills in the 2nd buyback

The State Bank of Pakistan (SBP) will buy back up to PKR 500 billion worth of Treasury Bills (T-Bills) in the second buyback on October 09, to encourage private sector lending by banks.

T-bills to be auctioned are set to mature in December 2024, a period marked by significant maturities, totaling around Rs4.6 trillion in T-bills.

SBP conducted the first-ever buyback auction for T-Bills last month, in which it repurchased PKR 351 billion against PKR 500 billion target.

The buyback cut-off yield was around 16% for the six- and 12-month papers, which were originally sold at around 20-21% rates.

Speaking to the media last week, SBP Governor Jameel Ahmed mentioned that the government’s current financing needs are minimal due to available liquidity, which has enabled them to start the buyback process.

“The funds released from here will be used by banks for private sector lending,” he said.