Government Raises Rs 1.22 Trillion Through Treasury Bills and PIB Auctions Amid Growing Investor Interest

Islamabad:The Government of Pakistan* has successfully raised a total of **Rs 1,220 billion** through the auction of Treasury Bills (T-Bills) and Pakistan Investment Bonds (PIBs). The move reflects strong investor interest in government securities, despite the current economic challenges.

According to data released by the *State Bank of Pakistan*, the government received bids worth **Rs 1,730 billion** for T-Bills and **Rs 1,592 billion** for PIBs. This indicates that investors are willing to invest over **Rs 3.3 trillion** in risk-free government securities, which is a concerning signal for the private sector in the current economic climate.

In the T-Bill auction, the government raised **Rs 965 billion**, surpassing its target of **Rs 850 billion**, despite a maturity amount of **Rs 821 billion**. This large volume of bids highlights the reluctance of banks to lend to the private sector, as there has been a noticeable decline in private sector loans since December 2024.

Economic experts argue that the surge in investment in non-productive government securities is hindering the growth of the private sector, potentially slowing industrial and commercial activities in the country.

The overall yield on T-Bills showed little change, with the cutoff rate for one-month T-Bills dropping by 6 basis points to **12.32%**, while the rates for 3-month, 6-month, and 12-month T-Bills remained steady at **12.01%**, **11.99%**, and **12.01%**, respectively.

Meanwhile, the PIB auction also saw significant investor interest, with bids worth **Rs 1,592 billion** received. However, the government accepted only **Rs 261 billion**, far below the target of **Rs 400 billion**.

Analysts suggest that this trend indicates investors’ preference for secure returns, rather than lending to the private sector, which could pose an obstacle to the country’s economic recovery.

The increasing interest in government securities further highlights the growing risk aversion among investors, signaling a shift away from financing the private sector and potentially stalling efforts to stimulate economic growth.