Govt to Borrow Rs4.9T from Banks in Q1 2026

ISLAMABAD: The federal government plans to borrow Rs4.9 trillion from commercial banks in Q1 2026 through treasury bills (T-bills) and Pakistan Investment Bonds (PIBs), according to the SBP auction calendar. Short-term T-bills (1, 3, 6 & 12 months) target Rs3.25 trillion, while PIBs (2–15 years) aim for Rs1.65 trillion. The strategy keeps T-bill targets below maturities to ease liquidity pressure, favours 6–12 month papers for flexibility amid expected easing, and focuses PIBs on medium-term with selective floating-rate use to manage duration risk without distorting the yield curve. This cautious mix reflects prudent debt management and a steady money-market outlook with gradual rate easing bias. The SBP recently cut its policy rate by 50 bps to 10.5% — total reduction of 1,150 bps since the 22% peak in June 2024. Pakistan posted a 1.6% GDP fiscal surplus (Rs2.1 trillion) in Jul–Sep FY26, slightly below last year’s 1.7%, largely driven by Rs2.42 trillion in central bank profits from record OMO positions.