SBP unveils Rs5.8tr auction plan

The State Bank of Pakistan (SBP) has unveiled an extensive auction target calendar amounting to over Rs5.8 trillion for the sale and management of government securities between November 2025 and January 2026, reflecting its strategy to balance liquidity, support fiscal financing needs and maintain monetary stability amid high interest rates and limited fiscal space.

According to the Domestic Markets and Monetary Management Department (DMMD), the plan covers Market Treasury Bills (MTBs), Pakistan Investment Bonds (PIBs), Government Ijara Sukuk and a buyback auction of floating-rate PIBs.

The SBP aims to raise Rs3.6 trillion through six MTB auctions scheduled for November 12, November 26, December 10, December 24, January 7 and January 21, against maturities of Rs4.013 trillion.

The largest auction, set for December 11, targets Rs800 billion, followed by Rs650 billion and Rs600 billion sales planned for November 27, January 8 and January 22, respectively.

Tenor-wise allocations include Rs600 billion in one-month bills, Rs900 billion in three-month, Rs950 billion in six-month and Rs1.15 trillion in 12-month instruments.

Under the PIB calendar, the SBP plans to raise Rs1.7 trillion, split between fixed-rate and floating-rate instruments. Three fixed-rate PIB auctions — on November 5, December 17 and January 14 — will target Rs1.2 trillion, offering yields between 10.50% and 11.50% across two- to 15-year maturities.

Additionally, six floating-rate PIB auctions are planned on the same MTB dates, with a combined target of Rs500 billion, carrying a semi-annual coupon rate of 10.8974%.

To manage secondary market liquidity, the SBP will conduct a buyback auction of floating-rate PIBs on November 12, with settlement on November 13, totalling Rs200 billion. The operation covers four bonds maturing between 2028 and 2029.

Separately, the SBP will purchase Government Ijara Sukuk (GIS) on a Bai Muajjal (deferred payment) basis, targeting Rs275 billion. Two auctions — on November 26 and December 24 — will facilitate liquidity within the Islamic banking system.

Meanwhile, the Pakistani rupee gained marginally by Re0.03 to close at 280.82 against the US dollar in the interbank market on Friday, whilst gold prices remained unchanged at Rs423,062 per tola despite a global uptick in bullion rates.

Adnan Agar, Director at Interactive Commodities, said the international gold market remains in a consolidation phase, trading between $3,910 and $4,045. "If prices hold and break above $4,050-4,080, gold could rise towards $4,150-4,200," he said, adding that sentiment remains positive amid US policy uncertainty and a potential government shutdown.