Govt raises Rs1.41tr via T-bills auction

KARACHI: The government raised Rs1.41 trillion from the auction of market Treasury bills on Wednesday, exceeding the target of Rs1.35 trillion, according to the auction result released by the State Bank of Pakistan (SBP).

Yields on the one-month T-bill increased by 24 basis points (bps) to 11.2403 per cent. However, the yields on the three-month T-bill remained unchanged at 10.9977 per cent. Similarly, the yields on the six-month T-bill also stayed steady at 10.8976 per cent, while yields on the 12-month paper decreased by 13 bps to 10.8 per cent.

In the auction for floating-rate Pakistan Investment Bonds, the government raised Rs208 billion (from both competitive and non-competitive bids) against a total participation of Rs767 billion and a target of Rs300 billion.

The SBP kept its key interest rate at 11 per cent in June.The government has laid out an ambitious domestic borrowing plan of Rs5.575 trillion through government securities in the first quarter of FY26 to finance the fiscal deficit, according to analysts. This planned borrowing is considered manageable due to an improved market appetite and falling inflation, which reinforce expectations of sustained economic stability.