- September 11, 2026
- Posted by: Tresmark
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The State Bank of Pakistan (SBP) has accepted Rs585.36 billion worth of five-year Pakistan Investment Bonds (PIBs) Floating Rate through a buy-back auction aimed at proactively managing the government’s domestic debt.
The auction, held on September 10, attracted Rs1.306 trillion in competitive bids against a target range of Rs500 billion to Rs600 billion. No non-competitive bids were received.
The accepted securities covered six PIB Floating Rate issues, with the largest acceptance recorded for PK05L0604280 at Rs184.40 billion, followed by PK05L2706299 at Rs140.69 billion and PK05L1804293 at Rs115.71 billion.
The total realised amount from the accepted securities stood at Rs605.46 billion, including Rs582.81 billion in realised value and Rs22.65 billion in accrued interest. Cut-off prices ranged between 99.4235 and 99.7154.
Industry sources said the buy-back was supported by liquidity generated through the transfer of around Rs1.9 trillion in SBP profits, providing the government with fiscal room to retire long-term domestic debt ahead of maturity.
The move is expected to help reduce future debt-servicing costs and improve the government’s domestic borrowing profile.
The latest retirement would also push cumulative domestic debt retired before maturity beyond Rs6.5 trillion, following earlier buy-backs of government securities, including the Rs351 billion T-bill buy-back conducted in 2024.
