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 domestic debt management. They said the transfer of the SBP’s healthy profit of around Rs1. 9 trillion has provided some fiscal cushion for the early retirement of long-term domestic debt, helping the government reduce its debt-servicing burden and manage its borrowing profile more effectively. In the past, the government has also undertaken early debt retirements following the transfer of SBP profits. According to SBP, bids were invited through PRISM for buy back auction of PIBs floating Rate with a target of Rs500 to Rs600 billion. Accordingly, the buy-back auction for five-year PIBs Floating Rate was held on September 10, 2026, with settlement scheduled for September 11, 2026. The State Bank received competitive bids amounting to Rs1. 306 trillion in face value. Of these, bids with a face value of Rs585. 36 billion were accepted. No non-competitive bids were received. The accepted securities comprised six PIBs Floating Rate issues. The largest acceptance was for PK05L0604280, with a face value of Rs184. 395 billion, followed by PK05L2706299 at Rs140. 691 billion and PK05L1804293 at Rs115. 705 billion. The SBP accepted Rs81. 567 billion of PK05L2109288, Rs60. 5 billion of PK05L1008283 and Rs2. 5 billion of PK05L1910280. The total realised amount from the accepted securities stood at Rs605. 46 billion, including Rs582. 81 billion in realised value and Rs22. 65 billion in accrued interest. The cut-off prices for the accepted securities ranged from 99. 4235 to 99. 7154. In a significant move, the federal government conducted first buyback auction of MTBs on September 30, 2024 and some Rs351 billion were accepted for T-bills set to mature in December 2024. Cumulative domestic debt retired before maturity has exceeded Rs5. 92 trillion, and with the latest retirement, the total is expected to cross the Rs6. 5 trillion mark. Copyright Business Recorder, 2026

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