SBP Eyes Rs4.875 Trillion from PIB & MTB Auctions in Q3 FY2025
KARACHI – July 2025:
The State Bank of Pakistan (SBP) has unveiled its auction calendar for Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs) for the third quarter of FY2025 (July–September), setting a combined target of Rs4.875 trillion. This move aligns with the government’s broader fiscal strategy of meeting funding requirements through domestic borrowing—a necessary step given IMF restrictions on direct borrowing from the central bank.
📅 Auction Details & Breakdown
🏛️ Fixed-Rate PIBs: Rs1 Trillion Target
Three fixed-rate bond auctions are planned:
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July 16: Rs300 billion
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August 1: Rs300 billion
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September 4: Rs400 billion
Available Tenors:
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2-year zero coupon
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3-year @ 10.50%
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5-year @ 11.00%
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10-year @ 11.50%
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15-year zero coupon
🔄 Floating-Rate PIBs: Rs1.4 Trillion Target
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First Auction: July 9 (Rs300 billion)
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Multiple auctions will follow throughout the quarter.
These instruments aim to provide flexibility in cost management while adapting to interest rate shifts.
🧾 Market Treasury Bills (MTBs): Rs3.175 Trillion Target
Six auctions planned:
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July 9: Rs1,350 billion
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July 24: Rs300 billion
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August 7: Rs425 billion
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August 21: Rs325 billion
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September 4: Rs550 billion
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September 17: Rs225 billion
Tenors Offered: 1-month, 3-month, 6-month, and 12-month bills.
The largest allocation, Rs950 billion, is earmarked for 12-month bills, indicating a preference for medium-term borrowing instruments to stabilize fiscal outflows.
📉 Gold Prices Tumble as Dollar Strengthens
On the commodities front, gold prices in Pakistan dropped significantly on Monday, mirroring a global decline in bullion as the US dollar gained strength and geopolitical tensions, along with updates on US trade policy, weighed on investor sentiment.
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Per Tola: Down Rs2,500 → Rs353,000
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Per 10 Grams: Down Rs2,143 → Rs302,640
(Source: All-Pakistan Gems and Jewellers Sarafa Association)
This marks one of the steepest single-day declines in recent weeks, with market watchers attributing the movement to stronger dollar index performance and investor rotation out of safe-haven assets.
💱 Rupee Depreciates Slightly
In the interbank market, the Pakistani rupee slipped slightly:
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Closing Rate: Rs284.22
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Previous Close: Rs283.97
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Depreciation: Re0.25 or 0.09%
Despite stable foreign reserves and reduced inflationary pressure, the rupee remains sensitive to external shocks and capital flow uncertainties, especially in the wake of shifting global trade policies and interest rate expectations.
📊 Conclusion
With a Rs4.875 trillion borrowing target via domestic debt instruments, the SBP continues to support fiscal sustainability under IMF-prescribed limits. While bond auctions offer critical funding for public finances, investors remain cautious, watching inflation trends, global commodity markets, and currency movements closely.
The concurrent drop in gold prices and marginal rupee weakening highlight ongoing volatility in Pakistan’s financial markets, making it vital for investors and policymakers to stay vigilant.