Karachi, May 8, 2025 – The State Bank of Pakistan (SBP) has officially invited applications from eligible financial institutions for selection as primary dealers for the fiscal year 2025–26. The announcement, made on Thursday, aims to appoint qualified institutions to facilitate government securities transactions under its Primary Dealer System.
In accordance with Rule C-1 of the Rules Governing Primary Dealer System—outlined in DMMD Circular No. 07 dated April 12, 2021—the SBP is seeking applications for the roles of Primary Dealer, Preliminary Primary Dealer, and Special Purpose Primary Dealer. The detailed selection criteria, privileges, obligations, and performance benchmarks for each category can be found in the referenced master circular.
Applicants are required to provide comprehensive documentation along with their submissions. These include a clear statement specifying the category of primary dealership they are applying for, a business plan sanctioned by the Asset and Liability Committee (ALCO) for banks and Development Finance Institutions (DFIs), or by the Board of Directors for other entities. The business plan should align with the guidelines presented in Annexure-E of the Primary Dealer Rules.
The SBP further emphasized that existing primary dealers and special purpose dealers must submit an update on the implementation of their current fiscal year’s business plans, detailing development initiatives undertaken during FY 2024–25.
In addition, non-bank applicants are required to demonstrate robust systems for seamless transaction processing, clearing, and settlement activities, especially in relation to primary auctions. This requirement aligns with paragraph A-6 of Annexure-E of the master circular.
Other necessary documents include the institution’s latest audited financial report, an updated schedule of business charges applicable to dealership activities, and a detailed breakdown of Investor Portfolio of Securities (IPS) accounts as of April 30, 2025, in the format prescribed in Annexure-A.
Applications must be submitted to the Director of the Domestic Markets & Monetary Management Department at the SBP, Karachi, no later than the close of business on May 30, 2025.
Through this process, the SBP aims to enhance market participation and ensure efficient primary market operations for government securities during FY 2025–26.