Five-year PIBs: SBP accepts bids worth Rs585.36bn in buy-back auction
KARACHI: In a move to proactively manage public debt, the State Bank of Pakistan (SBP) on Thursday conducted buy-back auction and accepted bids worth Rs585.36 billion of five-year Pakistan Investment Bonds (PIBs) Floating Rate (PFL). Industry sources said the initiative has leveraged the liquidity generated through the transfer of the SBP’s profit, reinforcing the government’s focus on proactive…
On Thursday, the State Bank of Pakistan (SBP) held a buy-back auction for five-year Pakistan Investment Bonds (PIBs) with a floating rate, accepting bids totalling Rs585.36 billion. This initiative serves to proactively manage public debt and leverages liquidity generated from transferring the SBP's profit, currently around Rs1.9 trillion.
The government has previously undertaken early debt retirements following SBP profit transfers, aiming to reduce debt-servicing burdens and manage borrowing effectively. The auction, held on September 10, 2026, had a target of Rs500 to Rs600 billion, with bids coming in at Rs1.306 trillion in face value. Competitive bids were accepted for six PIBs Floating Rate issues, with the largest acceptance being Rs184.395 billion.
The total realised amount from accepted securities was Rs605.46 billion, including Rs582.81 billion in realised value and Rs22.65 billion in accrued interest. This marks the first buyback auction of MTBs (Maturity Term Bonds) by the federal government, with cumulative domestic debt retired before maturity reaching over Rs5.92 trillion.
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