KARACHI: The government aims to borrow Rs4.9 trillion from banks through treasury bills and bonds in the first quarter of 2026, according to the auction calendar issued by the State Bank of Pakistan on Friday.
The government plans to raise Rs3.25 trillion through its short-term securities known as Market Treasury Bills (T-bills) with maturities of one, three, six, and 12 months. Additionally, it plans to sell fixed- and floating-rate Pakistan Investment Bonds (PIBs) with maturities of two, three, five, 10, and 15 years to borrow Rs1.65 trillion from commercial banks.
Saad Hanif, head of research at Ismail Iqbal Securities, said that the January-March auction calendar signals a cautious and disciplined borrowing stance, with market treasury bill targets kept below maturities, implying net retirement and helping contain short-term liquidity pressures.
“The tilt towards 6- and 12-month bills reflects a preference for funding flexibility amid expectations of further monetary easing,” Hanif said. “PIB issuance is evenly spread across medium tenors, with limited long-dated supply and selective use of floating-rate instruments, indicating an effort to manage duration risk without distorting the yield curve,” he added. “Overall, the auction mix points to prudent debt management, stable money-market conditions, and a gradual easing bias rather than an aggressive shift in the interest-rate outlook.”
The SBP cut its benchmark interest rate by 50 basis points (bps) to 10.5 percent last month. With the latest reduction, the central bank has lowered rates by 1,150bps since they peaked at 22 per cent in June 2024.
Pakistan recorded a fiscal surplus of 1.6 per cent of GDP, or Rs2.1 trillion, in July-September FY26, compared to a surplus of 1.7 per cent during the same period last year, thanks to receiving substantial profits of Rs2.42 trillion from the central bank. The SBP reported higher-than-average profits and dividends in FY25 due to record-high open market operation positions.
