The State Bank of Pakistan (SBP) has set a cumulative auction target of Rs6.525 trillion for Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs) for March to May 2026, underscoring heavy refinancing needs and continued reliance on domestic debt markets.
According to the auction calendars issued by the SBP's Domestic Markets & Monetary Management Department, the central bank plans to raise Rs5 trillion through short-term MTBs and Rs1.525 trillion via PIBs during the three-month period.
Total MTB maturities during the period stand at Rs4.259 trillion, including Rs1.204 trillion held by provincial governments, against which the SBP has set a higher gross target of Rs5 trillion, suggesting a net borrowing buffer. The MTB target comprises Rs1.1 trillion in one-month bills, Rs1.4 trillion in three-month papers, Rs950 billion in six-month bills and Rs1.55 trillion in 12-month instruments, with the largest single auction of Rs1 trillion scheduled for April 30.
For the longer period, the SBP has announced a Rs1.35 trillion target for fixed-rate PIBs across two-, three-, five-, 10- and 15-year tenors, with auctions of Rs400 billion on March 26, Rs450 billion on April 20 and Rs500 billion on May 5.
In addition, Rs175 billion will be raised through 10-year PIBs (issue date January 8, 2026; coupon 10.4639%) via seven auctions of Rs25 billion each between March 4 and May 20, bringing the total PIB target to Rs1.525 trillion.
Furthermore, the Pakistani rupee posted a marginal gain of Rs0.01 against the US dollar in the inter-bank market on Tuesday, closing at 279.45 compared to 279.46 on Monday.
Meanwhile, gold prices in Pakistan fell sharply in line with losses in the international market, as a stronger US dollar and fading prospects of an interest rate cut weighed on bullion amid rising inflation concerns linked to a prolonged Middle East conflict.
In the local market, the price of gold per tola declined by Rs13,900 to Rs549,962, according to the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, 10-gram gold dropped by Rs11,917 to Rs471,503. On Monday, the per-tola rate had surged by Rs13,300 to close at Rs563,862. Silver prices also decreased by Rs1,146 to Rs8,904 per tola on Tuesday.
Globally, spot gold fell 5.6% to $5,029.59 per ounce, while US gold futures slid 5.1% to $5,041.50, according to Reuters. Adnan Agar of Interactive Commodities said the decline reflected a flight to cash, supported by a stronger dollar and rising US Treasury yields, which reduced the appeal of non-yielding assets.
He said the recent rally had already priced in geopolitical risks, though rising oil and gas prices signalled that further volatility could revive gold demand in the coming sessions.
