Pakistan raises Rs685.5bn at treasury bill auction — Dawn

In Pakistan, the government raised a total of Rs685.5 billion at a treasury bill auction. The main amount — Rs417.6 billion — was raised during the auction, while another Rs267.9 billion came through non-competitive bids. The yields on bills of all maturities remained above the State Bank of Pakistan’s policy rate of 11.5%.

As Dawn reports, this was the last treasury bill auction before the announcement of the next monetary policy decision, scheduled for October 26.

Yield on six-month securities

The rate on six-month treasury bills fell by 6 basis points to 12.39%, compared with 12.45% at the previous auction. At the same time, it was 89 basis points higher than the current policy rate.

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At the previous auction, the yield on six-month bills rose by 75 basis points, from 11.70% to 12.45%. According to the publication, investors submitted bids worth Rs2.6 trillion at the current auction, compared with Rs2.7 trillion on October 1.

Banks’ demand for government securities

Investors, mainly banks, sought to place significant volumes of liquidity in government securities, as domestic lending opportunities are seen as limited. Financial experts link investors’ reluctance to take risks to the war in the Persian Gulf and political uncertainty in the country.

The report also notes that the private sector made no new borrowings in the first quarter. In fiscal year 2026, private-sector borrowing amounted to Rs1.4 trillion, compared with Rs1 trillion in fiscal year 2025. Bankers said that most of these funds were used to replenish working capital rather than for long-term investments.