Govt raises Rs392bn via T-bill auction

KARACHI: The government raised Rs392 billion through the auction of market Treasury Bills on Wednesday, falling short of its target of Rs800 billion.

The amount raised was also less than the maturity amount of Rs513 billion.

According to the auction results released by the State Bank of Pakistan (SBP), the cut-off yields on the various tenors of the T-bills stayed flat except for the 12-month paper, which rose slightly.

The yields on one-month T-bill stood at 12.0498 per cent. The yield on a three-month paper came at 11.8242 per cent, unchanged from the previous auction held on March 5. The yield on a six-month T-bill closed steady at 11.6699 percent, while the yields on 12-month paper increased by 26 basis points (bps) to 11.8999 percent. The auction saw the participation of Rs1.575 trillion. Analysts said the T-bill yields were largely flat as traders’ attention turned to the release of inflation data later this month.

Topline Securities, in a report, predicts that Pakistan’s Consumer Price Index (CPI) for March will reach its lowest point in over three decades, between 0.5 per cent and 1.0 per cent year-on-year (YoY). This is a decrease from the inflation rate of 1.5 per cent recorded in the previous month.

“For FY25, we revise down our inflation forecast from 6-7 per cent to 5-6 per cent owing to falling oil prices, and stability in nonperishable food prices ie wheat,” the report said.

“We believe the central bank has further room to cut the policy rate by 100bps based on average FY26 inflation estimates, however, given the IMF review, budget FY26, and rising imports, the SBP may pause the rate cut cycle till 1H2025,” it added. The SBP unexpectedly paused its easing cycle this month, keeping the benchmark policy rate at 12 per cent amid concerns about inflation risks stemming from volatile food prices and escalation in global tariffs.