Karachi, February 12, 2025 – The State Bank of Pakistan (SBP) has officially announced an auction for the buyback of government securities. This initiative is part of SBP’s ongoing efforts to manage market liquidity and optimize the financial system.
According to SBP, the auction will be conducted in line with the provisions of the MTB Rules 1998 (as amended through S.R.O 1585 (I)/2023) and PIB Rules 2000. The revised operational instructions and procedures for the buyback of government securities will now supersede the previous directives issued under DMMD Circular No. 06 of 2024.
SBP will facilitate the buyback of Government Securities, including Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs) in their Zero Coupon, Fixed Rate, and Floating Rate variants. This process will be carried out on behalf of the Government of Pakistan, ensuring transparency and efficiency in debt management.
The central bank will disclose detailed information regarding the auction, including the targeted security, the total amount, auction schedule, and results. These details will be made available through SBP’s pages on Refinitiv and Bloomberg, as well as on the official SBP website. This initiative reinforces SBP’s commitment to keeping the financial market well-informed.
All Primary Dealers will have the opportunity to submit competitive bids for participation in the auction. In addition, non-competitive bids will also be accepted under the existing guidelines. This ensures broad participation and a competitive bidding environment for the buyback process.
Eligible market participants are required to submit their bids through the Bloomberg Auction Module (AUPD) within the designated timeframe. The bid submission should include:
• The bid price per Rs. 100 of face value for the buyback, up to four decimal places.
• The total amount (face value) of the securities being offered for buyback.
Upon settlement, the securities bought back will be debited from the SGLA (Subsidiary General Ledger Account) of successful bidders, and their respective current accounts will be credited with the accepted amount.
All other applicable auction rules and procedures, as outlined in various SBP circulars regarding Marketable Government Securities, will remain in effect. Through these measures, SBP continues to play a pivotal role in ensuring a stable and efficient financial market.