Govt buys back Rs585 billion floating-rate PIBs to ease refinancing pressure

Profit by Pakistan Today reported that the government bought back Rs585 billion in five-year floating-rate PIBs on Thursday. The operation aims to lessen the refinancing burden on debt falling due in 2028-29 and to put cash into the interbank market. The auction covered six series of semi-annual instruments whose issue and maturity dates differ, according to the State Bank of Pakistan.

The government had aimed for a buyback between Rs500 billion and Rs600 billion. Offers valued at Rs1.306 trillion came in, and Rs585 billion of them, roughly 45%, were accepted. Including the accrued return, the outlay is put at roughly Rs605 billion, and every security was bought back a little beneath its face value.

In the largest security offered, only Rs2.5 billion was accepted against bids of Rs336 billion. The exercise comes almost two weeks after a record early repayment of Rs1.2 trillion owed to the SBP, which pushed prepaid domestic debt above Rs5.92 trillion. Profit transfers from the SBP, which reached Rs1.9 trillion in FY26 against Rs2.5 trillion in FY25, along with tax collection and spending controls, have supported that capacity. The transaction settles on 11 September and may also help hold short-term yields in check.