Karachi: The government mobilized PKR 491 billion through the auction of treasury bills (T-bills) on Wednesday, exceeding its target of PKR 400 billion, according to data released by the State Bank of Pakistan (SBP).
Despite surpassing the target, the raised amount fell short of the maturing debt of PKR 824 billion. Overall, total bids worth around PKR 1.4 trillion were received, reflecting strong participation from investors.
The yield on the one-month T-bill declined by 15 basis points to 10.75%, while the rates on other maturities remained unchanged. The three- and six-month tenures held steady at 10.85%, and the 12-month paper stayed at 11%.
On the same day, the government also raised PKR 36.7 billion from a floating-rate Pakistan Investment Bond (PIB).
Analysts said the results reflect expectations that the SBP will keep its policy rate unchanged in its next monetary policy announcement. The central bank had maintained the key rate at 11% in July, after cutting it from 22% in June.
“Robust participation highlights ample system liquidity, while higher-than-target acceptance reflects elevated government funding requirements,” said Saad Hanif, head of research at Ismail Iqbal Securities Limited. He added that the flat yield curve suggests limited room for near-term monetary easing, particularly in light of recent flash floods that have disrupted crops in Punjab and could add inflationary pressure.
Inflation eased to 3% in August from 4% in July. However, analysts caution that supply disruptions, fiscal challenges, and the upcoming IMF review could weigh on the government’s fiscal position.
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