State Bank of Pakistan raises PKR 1,620.3 billion via T-bill and PIB auction

The State Bank of Pakistan (SBP) on Wednesday raised a total of PKR 1,620.3 billion through the sale of Treasury Bills (T-Bills) and Pakistan Investment Bonds (PIBs).

In the latest T-Bill auction, the central bank secured PKR 640 billion, slightly below its target of PKR 650 billion.

The yields on T-Bills rose by 11 to 34 basis points, with the cutoff rates for one-month, three-month, six-month, and 12-month bills now standing at 12.3898%, 12.0100%, 11.9999%, and 12.0100%, respectively.

The auction attracted bids totaling PKR 1,085 billion, far exceeding the target.

Additionally, the SBP raised PKR 980.5 billion through the sale of floating-rate PIBs. This figure fell short of the target of PKR 1,132.5 billion.

The government's borrowing efforts come as Pakistan faces a significant rise in federal debt. Between March and May, the government plans to generate PKR 6,750 billion by selling T-Bills and investment bonds.

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

By January 2025, the country's total debt stock had climbed to PKR 72,123 billion, compared to PKR 68,914 billion in June 2024, with domestic borrowing increasing by 6.5%.