Pakistan Unveils Rs6.5T Q3 Borrowing Strategy

The federal government has disclosed its comprehensive borrowing strategy for the October-December quarter of FY2025-26, projecting a total borrowing plan of Rs6.5 trillion to meet pressing financial requirements.

The State Bank of Pakistan (SBP) will mobilize Rs1.25 trillion through Pakistan Investment Bonds (PIBs) spanning multiple maturities, including two-year, three-year, five-year, 10-year, and 15-year fixed-rate bonds. Auctions are scheduled for October 14 (Rs450 billion), November 5 (Rs400 billion), and December 17 (Rs400 billion), with settlement occurring one day post-auction. The total maturing amount during the quarter is Rs652 billion.

Additionally, the SBP aims to secure Rs900 billion via 10-year floating-rate PIBs, introduced in July 2025 with a semi-annual coupon rate of 10.8974%. The inaugural auction for these floating-rate bonds opens on October 1, targeting Rs200 billion, followed by six more until December 24.

For urgent liquidity, the government will tap Rs4.35 trillion in Market Treasury Bills (MTBs) across diverse maturities. The initial MTB auction on October 1 will seek Rs750 billion.

The total maturing amount of MTBs for this period is Rs4.605 trillion, with provincial governments anticipated to inject Rs600 billion into select auctions.