State Bank of Pakistan raises PKR 1,620.3 billion via T-bill and PIB auction
Cut-off yields of T-bills surge by upto 34 basis points
Business Desk
The Business Desk tracks economic trends, market movements, and business developments, offering analysis of both local and global financial news.
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%.
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