Govt plans Rs4.9tr borrowing

KARACHI:

The State Bank of Pakistan (SBP) has announced the auction calendar for Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs) for the third quarter of FY2025 (July–September), targeting a combined amount of Rs4.875 trillion. The move is part of the government’s domestic borrowing strategy aimed at meeting fiscal needs and managing public debt efficiently amid International Monetary Fund (IMF) restrictions on direct central bank borrowing.

For fixed-rate PIBs, the SBP has scheduled three auctions with a total target of Rs1 trillion. These will be held on July 16 (Rs300 billion), August 1 (Rs300 billion), and September 4 (Rs400 billion). Available tenors include 2-year zero coupon, 3-year (10.50%), 5-year (11.00%), 10-year (11.50%), and 15-year zero coupon instruments.

Alongside these, the SBP will conduct floating rate PIB auctions, with a cumulative target of Rs1.4 trillion. The first such auction is scheduled for July 9 with a Rs300 billion target, followed by several others across the quarter.

Six auctions of MTBs are also planned during the quarter, aiming to raise Rs3.175 trillion. The auction dates are July 9 (Rs1,350 billion), July 24 (Rs300 billion), August 7 (Rs425 billion), August 21 (Rs325 billion), September 4 (Rs550 billion), and September 17 (Rs225 billion). The bills will be offered in 1-month, 3-month, 6-month, and 12-month tenors. The largest allocation, Rs950 billion, is reserved for the 12-month duration, reflecting a preference for medium-term borrowing.

Meanwhile, gold prices in Pakistan dropped sharply on Monday, mirroring a decline in international bullion rates as the US dollar gained strength and investors responded to geopolitical developments, particularly an update on US trade policy.

According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola fell by Rs2,500, settling at Rs353,000. The rate for 10 grams declined by Rs2,143, reaching Rs302,640.

The rupee also recorded a slight depreciation in the interbank market, slipping by 0.09%. The local currency closed at 284.22, down by Re0.25 compared to the previous session’s close of 283.97.