Five-year PIBs: SBP accepts bids worth Rs585.36bn in buy-back auction

Business Recorder reported that the State Bank of Pakistan accepted bids worth Rs585.36 billion in a buy-back auction for five-year floating rate Pakistan Investment Bonds. The auction took place on September 10, 2026, with settlement set for September 11, 2026. Bids were invited through PRISM, aiming for Rs500 to Rs600 billion, and competitive offers totalling Rs1.306 trillion in face value came in. No non-competitive tenders were submitted.

Industry sources tied the move to liquidity generated when the SBP handed over its profit, which was roughly Rs1.9 trillion. They added that this gives the government fiscal room to retire long-term domestic debt early, easing its debt-servicing load. According to the report, earlier SBP profit transfers have also been followed by early debt retirements.

Among the six accepted floating rate bonds, PK05L0604280 was the biggest at Rs184.395 billion face value, while PK05L2706299 and PK05L1804293 came next with Rs140.691 billion and Rs115.705 billion. Realised proceeds reached Rs605.46 billion, of which Rs582.81 billion was realised value and Rs22.65 billion was accrued interest, while cut-off prices sat between 99.4235 and 99.7154. Earlier, the federal government held its first MTB buyback on September 30, 2024, accepting Rs351 billion of bills due in December 2024. Overall, domestic debt bought back ahead of maturity exceeds Rs5.92 trillion, and the report adds that the latest retirement should push the total past Rs6.5 trillion.