SBP releases Rs4.5tr borrowing plan

Injects Rs13tr via OMOs, unveils '26 auction calendar; gold jumps Rs5,700/tola

KARACHI:

The State Bank of Pakistan (SBP) injected Rs13 trillion through both conventional and Shariah-compliant Open Market Operations (OMOs) on Friday. In the conventional reverse repo purchase segment, the central bank accepted a total of Rs12.9 trillion in face value, translating into a realised value of Rs12.6 trillion.

This comprised Rs750 billion in face value for the seven-day tenor at a uniform rate of 10.51% per annum, and the entire Rs12.24 trillion offered for the 14-day tenor, also at 10.51%. Bids for both tenors ranged between 10.56% and 10.51%, with strong participation reflected in 13 quotes for the seven-day maturity and 20 quotes for the 14-day maturity. A substantial portion of the seven-day offers at the floor rate of 10.51% was accepted on a pro-rata basis.

In the parallel Shariah-compliant Mudarabah-based injection operation held the same day, the SBP accepted a total of Rs558 billion in face value, corresponding to a realised value of Rs558.9 billion. For the seven-day tenor, the full Rs358 billion offered was accepted at a rate of 10.55%. In the 14-day tenor, Rs200 billion was accepted out of the Rs258 billion offered on a pro-rata basis at 10.54% per annum. Quotes for both maturities ranged narrowly between 10.56% and 10.54%, with two participants in each tenor.

Separately, the SBP released its auction calendar for government securities covering January to March 2026, targeting more than Rs4.5 trillion in fresh borrowing. The plan includes Rs1,350 billion through fixed-rate Pakistan Investment Bonds (PIBs), Rs300 billion via semi-annual floating-rate 10-year PIBs, and Rs3,250 billion through Market Treasury Bills (MTBs).

Fixed-rate PIB auctions are scheduled monthly on January 14, February 6 and March 11, with each auction targeting Rs450 billion. The amount will be evenly split across two-, three-, five- and 10-year tenors at Rs100 billion each, along with Rs50 billion for the 15-year segment. Coupon rates have been set at zero for the two- and 15-year tenors, 10.25% for three-year, 10.50% for five-year and 11.00% for 10-year maturities.

Floating-rate 10-year PIBs will be auctioned on a bi-weekly basis from January 7 to March 16, with each auction targeting Rs50 billion at a reference coupon of 10.4639%. For short-term funding needs, six MTB auctions are planned between January 7 and March 16, with targets ranging from Rs350 billion to Rs850 billion to cover maturities and expected provincial investments.

Meanwhile, the rupee appreciated by one paisa against the US dollar in interbank trading on Friday, closing at Rs280.11 compared with Rs280.12 a day earlier.

Gold prices, however, rose sharply in the local market. The price of 24-karat gold increased by Rs5,700 per tola to settle at Rs460,262, while the price of 10 grams rose by Rs4,887 to Rs394,600, according to the All Pakistan Sarafa Gems and Jewellers Association.