The federal government plans to raise Rs7.15 trillion through Treasury bill and Pakistan Investment Bond auctions between June and August, according to the latest auction calendar. The borrowing strategy reflects heavy reliance on domestic debt markets to manage financing needs and refinance existing obligations during the period.
Under the plan, the government aims to generate Rs6 trillion through Treasury bills, while Rs1.05 trillion will come from fixed-rate Pakistan Investment Bonds. In addition, Rs100 billion is expected through floating-rate bonds, showing a diversified but largely short-term borrowing structure focused on liquidity management.
Read more : ‘Pakistan’s external debt profile remains concessional, long-term’
Compared with earlier periods, the current borrowing target shows a mixed adjustment in funding needs. Previously, targets stood at Rs4.9 trillion for January to March and Rs6.5 trillion for March to May, indicating a significant increase in overall market activity in recent months.
However, officials clarified that most Treasury bill borrowing is expected to refinance maturing debt rather than create new fiscal space. Consequently, the government is primarily rolling over existing obligations, which keeps net new borrowing pressure relatively contained despite high gross figures.
Read more : Circular debt in power and gas sectors rises to Rs5.1 trillion
The auction schedule is heavily front-loaded, with the government planning to raise Rs2 trillion in the first auction settling on June 11. At the same time, maturities of Rs1.835 trillion are due on the same day, highlighting the large-scale refinancing requirement at the start of the cycle.
Furthermore, borrowing targets are expected to decline gradually to between Rs350 billion and Rs400 billion by August. Meanwhile, the fixed-rate PIB target has been reduced to Rs1.05 trillion from Rs1.35 trillion, while floating-rate bond issuance has also been cut to Rs100 billion from earlier ranges of up to Rs400 billion, reflecting a more cautious medium-term funding approach.