KARACHI – The government successfully raised the highest amount for the longest tenor of 15 years through the sale of Pakistan Investment Bonds (PIBs), according to the State Bank.

The auction surpassed its target, mirroring the performance of treasury bills. Against a set goal of Rs400bn, the government successfully mobilized Rs654.3bn.

Notably, investors showed strong interest in the 15-year PIBs, offering bids worth Rs497.5bn. Of this, the government secured Rs280bn, marking the highest amount raised for a single tenor. according to bankers, this response reflects investor confidence in potential interest rate easing in the coming months, with limited expectations of further increases.

the second-highest amount was raised through 10-year bonds, totaling Rs205bn. Analysts noted that this shift towards longer tenors would aid the government in enhancing its debt profile by prioritizing long-term borrowings over short-term liabilities.

The auction garnered total bids of Rs1.28tr. The government accepted Rs638.88bn through competitive bids and an additional Rs15.4bn through non-competitive bids.Other maturities saw smaller amounts raised: Rs108.5bn for five years, Rs5.6bn for three years, and Rs39.5bn for two years.

In the wake of widespread flooding,some bankers suggested that the government might need to increase borrowing from domestic banks,even with the anticipation of foreign assistance,to address urgent funding needs for relief and reconstruction.

Investor Confidence Boosts Pakistan’s Debt Profile

Investors offered the largest amount for 15-year PIBs…the government raised Rs280bn – the highest amount secured for a single tenor.

The successful bond auction indicates a positive shift in investor sentiment towards Pakistan’s long-term economic outlook. By securing funds for longer tenors, the government aims to stabilize its debt profile and reduce reliance on short-term financial instruments.