KARACHI: The federal government plans to raise Rs 6.525 trillion from the domestic resources through sale of security bonds in the next three months (March-May) of 2026 to fill the financing gap.
According to auction calendars issued by the State Bank of Pakistan (SBP) on Tuesday, the federal government plans to borrow Rs 5 trillion through the sale of Government of Pakistan Market Treasury Bills (MTBs) during March to May of 2026, against maturities of Rs 4.259 trillion falling due in the same period.
In addition, about Rs 1.525 trillion is be raised through sale of Pakistan Investment Bonds (PIBs), including Rs 1.35 trillion via fixed-rate PIBs and Rs 175 billion through semi-annual floating-rate PIB auctions.
Analysts said that with insufficient external financing, the federal government meeting most of its financing needs through domestic sources.
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Overall, seven MTB auctions are scheduled during the next three months of FY26 to finance the fiscal deficit. Of the total, around Rs 1.25 trillion is set to be raised through two MTB auctions in March 2026, followed by Rs 2.15 billion in April 2026with three auctions and Rs 1.6trillion in May 2026 through two auctions.
Similarly, two auctions for fixed-rate PIBs are scheduled for March 26 and April 20 with a targeted borrowing of Rs450 billion at each auction. While, an auction of fixed-rate PIBs will be held on May 5, 2026 for a targeted amount of Rs500 billion.
Seven auctions of floating-rate PIBs, each with a target size of Rs 25 billion, will be conducted during the next three months to meet an overall borrowing target of Rs 175 billion.
According to recent monetary policy statement, estimates from the financing side suggest an improvement in the fiscal balance during first half of FY26, indicating relatively contained expenditures.
In particular, interest payments remained significantly lower than the same period last year, which is likely to help achieve the full-year fiscal deficit target. However, SBP believed that achieving the annual primary surplus target seems challenging.
Copyright Business Recorder, 2026
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