KARACHI: The government on Friday raised the highest amount for the longest tenor of 15 years by selling Pakistan Investment Bonds (PIBs), the State Bank reported.
Like treasury bills, the auction fetched more than the target. Against the set target of Rs400bn, the government mobilised Rs654.3bn.
Notably, investors offered the largest amount for 15-year PIBs, submitting bids worth Rs497.5bn. Of this, the government raised Rs280bn — the highest amount secured for a single tenor. Bankers said the response indicated investor confidence that interest rates may ease in the coming months, with little expectation of further increases.
The second-highest amount was raised through 10-year bonds at Rs205bn. Analysts observed that the shift towards longer tenors would help the government improve its debt profile by relying more on long-term borrowings instead of short-term liabilities.
The auction attracted total bids of Rs1.28tr. The government accepted Rs638.88bn through competitive bids and another Rs15.4bn through non-competitive bids. Other maturities raised smaller amounts: Rs108.5bn for five years, Rs5.6bn for three years and Rs39.5bn for two years.
In the wake of widespread flooding, some bankers said the government may need to borrow more from domestic banks, even if foreign assistance materialises, to meet urgent funding needs for relief and reconstruction.
Published in Dawn, September 6th, 2025