Pakistan’s government is set to borrow Rs 5.3 trillion from commercial banks between November 2025 and January 2026 to cover the budget deficit. The borrowing will take place through Treasury bills (T-bills) and Pakistan Investment Bonds (PIBs), signaling the government’s ongoing reliance on local financial markets for short-term and long-term financing.
The government plans to raise Rs 3.6 trillion via market Treasury bills, which have maturities ranging from one to 12 months. Additionally, it will issue PIBs, with maturities of two to 15 years, to raise Rs 1.7 trillion. The auction calendar for these operations was issued by the State Bank of Pakistan (SBP) on Friday.
Analysts noted that the substantial participation of banks in recent T-bill and PIB auctions reflects their ongoing preference for government securities, particularly as private sector credit demand remains low.
Experts believe that government borrowing needs could ease once the next loan tranche from the International Monetary Fund (IMF) is disbursed, leading banks to take advantage of current market conditions by maximizing their government securities holdings.
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