The State Bank of Pakistan (SBP), operating under the executive authority of Governor Jameel Ahmad, raised a total of Rs352.17 billion, inclusive of accrued interest, through accepted “competitive bids” in the Wednesday Pakistan Investment Bonds (PIBs) auction. This macroeconomic liquidity operation successfully absorbed substantial market capital against total submitted bids holding a massive face value of Rs849.05 billion.
According to the official auction results released by the central bank, the core realized capital extracted strictly from accepted “competitive bids” anchored at Rs336.17 billion, supported by an integrated accrued interest allocation of Rs16 billion. Concurrently, the central bank authorized the acceptance of “non-competitive bids” featuring a face value of Rs34.46 billion; these secondary retail and institutional allocations operate entirely outside the primary Rs352.17 billion competitive realization benchmark.
“The central bank received bids with a total face value of Rs849.05 billion… The total accepted face value, including competitive and non-competitive bids, stood at Rs376.74 billion.”
Market execution data reveals a decisive institutional preference for medium-term sovereign debt, with three-year PIBs accounting for the absolute largest capital share. These instruments generated a formidable Rs200.85 billion, including accrued interest, settling at a “cut-off yield” of 12.7460% and registering a “weighted average yield” of 12.7370%.
Five-year government securities ranked secondary in operational volume, generating Rs125.32 billion at a definitive “cut-off yield” of 12.8998%, while establishing a “weighted average yield” of 12.8299%. Furthermore, the central banking authority raised Rs25.80 billion through long-term 10-year bonds, locking in a “cut-off yield” of 12.8500% and a “weighted average yield” of 12.8135%.
Short-term discount and ultra-long securities experienced suppressed yield realization and strict rejections. Two-year “zero-coupon bonds” generated merely Rs201.42 million against a “cut-off yield” of 12.7950% and a “weighted average yield” of 12.7945%. Meanwhile, market bids aiming to secure 15-year “zero-coupon bonds” were entirely rejected by the SBP yield management mechanism.
PIB Auction Settlement Breakdown
| Sovereign Debt Tenor | Bids Received (Face Value) | Total Capital Generated | Cut-Off Yield | Weighted Average Yield |
| 2-Year Zero-Coupon | Rs63.35 billion | Rs201.42 million | 12.7950% | 12.7945% |
| 3-Year Bond | Rs386.40 billion | Rs200.85 billion | 12.7460% | 12.7370% |
| 5-Year Bond | Rs309.78 billion | Rs125.32 billion | 12.8998% | 12.8299% |
| 10-Year Bond | Rs84.53 billion | Rs25.80 billion | 12.8500% | 12.8135% |
| 15-Year Zero-Coupon | Rs5.00 billion | Rs0 (Rejected) | N/A | N/A |
Key Macroeconomic Metrics
- The comprehensive face value of all accepted market bids, combining both “competitive bids” and “non-competitive bids,” reached Rs376.74 billion.
- The overarching bid ceiling submitted to the central banking mechanism equaled a massive Rs849.05 billion face value.
- The formal auction commenced and concluded on October 7, 2026, with the official financial settlement programmed directly for October 8.