The State Bank of Pakistan has announced instructions for the buyback of Government Securities in terms of the “MTB Rules 1998 (as amended vide S.R.O 1585 (I)/ 2023) and PIB Rules 2000.”

In a circular, the SBP stated that the central bank would “conduct auctions for the Buyback of Government Securities, including MTBs [Market Treasury Bills] and PIBs or Pakistan investment bonds (Zero Coupon, Fixed and Floater) on behalf of the Government of Pakistan.”

Here are some key points regarding the buyback of Government Securities:

• All primary dealers are eligible to submit competitive bids in the auctions, and non-competitive bids can also be submitted according to existing guidelines.

• For the auction, eligible participants must submit the bid price (per Rs100 of face value) for the buyback, accurate to four decimal places or amount (face value) of the securities in the auction bidding on the Bloomberg Auction Module (AUPD) within the designated timeframe.

• The SBP will publish details such as the security type, target amount, auction schedule, and results on SBP pages at Refinitiv and Bloomberg, as well as on the SBP website.

• On the settlement date, the bought-back securities will be debited from the successful bidders’ SGLA, and their accounts will be credited with the accepted amount.

• All other auction rules and procedures as outlined in various circulars concerning Marketable Government Securities will also apply to the buyback auctions.

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