The State Bank of Pakistan (SBP) raised Rs491 billion through the sale of short-term government bonds in an auction held on October 1, 2025. The auction saw an increase in cut-off yields by up to 41 basis points (bps) across all tenors.
A total of Rs1.494 trillion in bids were received, with a realised value of Rs1.438 trillion. The largest portion of the bids, Rs793 billion, was for 1-month treasury bills, followed by Rs140.378 billion for 3-month, Rs210.245 billion for 6-month, and Rs350.85 billion for 12-month MTBs.
The government accepted Rs730.436 billion worth of bids, falling short of its target of Rs750 billion. The accepted amount comprised Rs612 billion in competitive bids and Rs84.11 billion in non-competitive bids.
The cut-off yield on the 1-month T-bills rose by 41bps, reaching 11.1502% compared to 10.7445% in the previous auction. The government raised Rs318.418 billion through 1-month T-bills. The 3-month MTBs saw a 20bps increase in yield to 11.0499%, with Rs56.226 billion raised. The 6-month T-bills’ yield increased by 21bps, to 11.0499%, and Rs112.438 billion was raised. The 12-month T-bills yielded 11.1901%, up by 19bps, bringing in Rs243.353 billion.
In addition to the T-bills, the federal government raised Rs246.753 billion through the sale of 10-year Pakistan Investment Bonds (PIBs) – Floating Rate (PFL) Semi Annual, with total bids for PIBs amounting to Rs394 billion.
The SBP’s Monetary Policy Committee (MPC) has kept the policy rate unchanged at 11% since May 2025, expecting inflation to rise due to factors like flooding and supply chain disruptions.
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