The government raised more than Rs1 trillion through fresh auctions of treasury bills and long-term Pakistan Investment Bonds (PIBs) on Wednesday, amid strong liquidity in the banking sector and expectations of further monetary easing.
According to data released by the State Bank of Pakistan, the government borrowed Rs979.3 billion through T-bills and another Rs108bn via PIBs, bringing the total to Rs1.087 trillion. Market analysts described the result as indicative of robust investor appetite for government securities.
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Cut-off yields on T-bills were reduced by up to 34 basis points across various tenors. Dealers interpreted the decline as a signal that the central bank may consider a further 50bps cut in the policy rate at its upcoming monetary policy meeting, following earlier adjustments.
The auctions attracted bids worth Rs2.5 trillion, underscoring the ample liquidity held by commercial banks. Against a target of Rs850bn, the government accepted Rs979bn in T-bills, with the largest interest seen in the 12-month tenor.
Investors submitted Rs1.374tr in bids for 12-month papers, and the government picked Rs720bn — the highest amount among all maturities. Meanwhile, Rs46.6bn was raised for three-month papers, Rs41.5bn for one-month, and Rs14.75bn for six-month.
Despite the fresh borrowings, the overall pace of government debt accumulation in the first five months of FY26 has been relatively moderate. Domestic debt rose by just Rs144bn during July–November FY26, supported by Rs2.7tr in liquidity supplied by the State Bank in the form of profits.
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Data shows that domestic debt nevertheless expanded sharply over the past year, increasing by Rs6.035tr to Rs54.619tr in November 2025 from Rs48.584tr a year earlier. Much of this increase stemmed from long-term PIBs, which accounted for Rs5.4tr of the rise between November 2024 and November 2025.
Officials say the shift towards long-term borrowings aims to ease repayment pressures, with T-bill issuance kept below maturity levels. Wednesday’s T-bill target of Rs850bn compared with maturities totaling Rs875bn.