Latest news with #PIBs
Express Tribune
3 days ago
- Business
- Express Tribune
FX dips by $7m as SBP plans Rs4.35tr auction
Listen to article The State Bank of Pakistan (SBP) reported a marginal decline in its foreign exchange reserves for the week ending May 30, 2025, with holdings falling by $7 million to $11.5 billion. Total liquid foreign reserves stood at $16.6 billion, including $5.1 billion held by commercial banks. The slight dip comes as Pakistan continues to navigate external debt repayments and manage its current account as the country relies on inflows from multilateral institutions and overseas remittances to strengthen its external sector. As part of its liquidity management, the SBP also released its auction calendar for government securities from June to August 2025, targeting Rs4.35 trillion in borrowing. This includes auctions for Market Treasury Bills (MTBs), fixed-rate Pakistan Investment Bonds (PIBs), and floating-rate PIBs. The total maturing amount for MTBs during this period is Rs3.063 trillion, while the SBP has set a slightly lower auction target of Rs2.85 trillion. The issuance is spread across tenors: Rs750 billion each for 1-month and 3-month papers, Rs625 billion for 6-month, and Rs725 billion for 12-month instruments. For longer-term financing, the SBP plans to raise Rs900 billion via fixed-rate PIBs — Rs300 billion for 2-year bonds and Rs150 billion each for 3-, 5-, 10-, and 15-year tenors. An additional Rs600 billion will be raised through 10-year floating-rate PIBs. The grand total of all planned auctions stands at Rs4.35 trillion, reflecting the government's financing requirements and the SBP's liquidity management strategy. Meanwhile, domestic bullion prices surged on Thursday, tracking international market gains driven by safe-haven demand. However, gains in gold were later pared after news of a phone conversation between Chinese President Xi Jinping and US President Donald Trump signalled a possible thaw in trade tensions. The price of 24-karat gold rose by Rs4,300 per tola to Rs358,400, according to the All-Pakistan Gems and Jewellers Sarafa Association. Ten-gram gold rose by Rs3,687 to Rs307,270. The metal had remained flat a day earlier at Rs354,100 per tola. Silver also gained strongly, hitting a 13-year global high as it crossed $35 per ounce. In the local market, silver prices rose by Rs159 to Rs3,745 per tola. Adnan Agar, Director at Interactive Commodities, said gold traded between $3,360 and $3,403 globally. "Tomorrow's US non-farm payroll data will be key in setting gold's direction," he noted, adding that "The Xi-Trump call has sparked speculation about easing trade tensions. Trump is expected to hold a press conference in the next few hours. If there's any positive announcement, gold could ease further." The rupee also posted a mild gain, appreciating by 0.02% to close at 282.17 against the US dollar, up five paisas from the previous day.
Express Tribune
09-04-2025
- Business
- Express Tribune
Govt raises Rs427b in PIB auction
Listen to article The government has raised Rs427.1 billion in the latest auction of Pakistan Investment Bonds (PIBs), significantly exceeding its target of Rs350 billion and reflecting strong investor interest. At the auction conducted by the State Bank of Pakistan (SBP) on Wednesday, investors submitted total bids of Rs887.6 billion for various tenors. Cut-off yields for accepted bids ranged from 11.88% to 12.79%, exhibiting a slight adjustment compared to the previous auction. The most substantial participation and allocation came in the 10-year tenor, where the SBP accepted bids worth Rs248.39 billion. Other notable allocations included Rs98.55 billion for five-year PIBs, Rs41.62 billion for two-year bonds and Rs38.58 billion for three-year papers. The yield curve remained upward sloping, with longer tenors commanding higher yields, which indicated market expectations of sustained inflation or a tighter monetary policy in the medium to long term. Meanwhile, gold prices registered a sharp increase, mirroring the global uptrend. According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the per-tola price rose by Rs3,000 to Rs321,000. On the international front, bullion rose by $30 during the day, reaching $3,040 per ounce, according to the APSGJA. Interactive Commodities Director Adnan Agar noted that international gold prices surged by nearly $100 during the day. "Gold touched a low of $2,978 and is currently trading at a high of $3,084. The market is holding at these elevated levels," he said. He attributed the surge to escalating trade tensions between China and the United States. In the inter-bank market, the Pakistani rupee experienced a marginal decline against the US dollar. The rupee closed at 280.78, down by 5 paisa, or 0.02%, from the previous day's rate of 280.73.
Express Tribune
26-03-2025
- Business
- Express Tribune
Govt borrows Rs1.67tr via T-bills
Over half of the fresh borrowing in the education sector was done by the higher education sector. PHOTO: FILE Listen to article The government has borrowed Rs1.67 trillion from private banks and other institutions in its latest treasury bill auctions. The State Bank of Pakistan (SBP) raised Rs1.67 trillion through auctions for Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs) held on March 26, 2025, with settlement scheduled for April 3, 2025. The PIB auction received total bids of Rs1,132.5 billion, with accepted bids amounting to Rs980.505 billion, including Rs972 billion in competitive bids and Rs8.505 billion in non-competitive bids. Notably, all bids for 2-year PIBs were rejected, while the 5-year tenor attracted Rs16.903 billion at a cut-off price of 96.8291. The 10-year PIBs dominated the auction, with Rs963.602 billion accepted at a cut-off price of 92.6071. In the MTB auction, the SBP received bids worth Rs1,084.95 billion, accepting Rs689.768 billion, comprising Rs609.95 billion in competitive bids and Rs29.818 billion in non-competitive bids. The 1-month MTBs recorded the highest cut-off yield at 12.3898%, followed by 3-month and 12-month tenors at 12.0100%, while the 6-month MTBs closed at 11.9999%. The weighted average yields ranged between 11.8256% and 12.2483%, reflecting stable investor sentiment across short- to medium-term tenors. The results highlight strong demand for government securities, particularly longer-dated PIBs, signalling the banking sector's reliance on government borrowing. Meanwhile, the SBP has been actively intervening in the interbank foreign exchange (FX) market over the past several months, with interventions fluctuating between $536 million and $1,151 million. According to data from Topline Research and the SBP, FX interventions stood at $573 million in June 2024, rising to $722 million in July before dropping to $569 million in August. A significant increase was observed in September, with interventions reaching $946 million, followed by further hikes to $1,026 million in October and a peak of $1,151 million in November. By December, interventions declined to $536 million. These interventions are often criticised for keeping the dollar high, benefiting exporters while limiting potential rupee appreciation. Without these purchases, the rupee could have been stronger against the greenback. The Pakistani rupee recorded a slight gain against the US dollar, appreciating 0.06% in the interbank market on Wednesday. By the close of trading, the currency stood at 280.26, marking an increase of 16 paisa from the previous day's 280.42. Meanwhile, gold prices in Pakistan remained stable on Wednesday, with the precious metal selling at Rs317,800 per tola, unchanged from the previous session, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). This stability followed a Rs800 per tola decline on Tuesday. The global gold market also remained steady, with international rates holding at $3,021 per ounce, as per APGJSA. Adnan Agar, Director at Interactive Commodities, noted that the gold market remains lacklustre, confined to a narrow trading range of $3,005 to $3,035 per ounce. He attributed this stagnation to the absence of major economic data from the US and ongoing uncertainty regarding tariffs and geopolitical tensions between Russia and Ukraine.
Express Tribune
10-03-2025
- Business
- Express Tribune
Govt seeks to diversify lending beyond banks
Federal Minister for Finance Muhammad Aurangzeb on Monday reaffirmed the government's commitment to supporting the insurance sector as he recognised its potential for stimulating significant private sector investment. During a meeting with a delegation of chief executive officers of Pakistan's leading insurance companies, the minister said that the government wanted to diversify lending beyond the banking sector and urged the insurance industry to step up their activities and meet the growing demand from customers. "This includes expanding the sector by focusing on innovation, enhancing productivity and driving further growth," he added. The discussion focused on the growth of the insurance sector and its contribution to the national economy, with a particular emphasis on its impact on the healthcare system, investment in Pakistan Investment Bonds (PIBs), capital markets and long-term investment opportunities. Aurangzeb assured the delegation that the government would continue to work closely with industry leaders and stakeholders to ensure long-term prosperity of the insurance sector, which was a vital component of Pakistan's economic landscape.
Yahoo
28-02-2025
- General
- Yahoo
Bird's death leads to warning of pollution event
Wildlife experts have warned of a possible pollution event in Alderney after a bird was poisoned by a toxic substance. An islander found a razorbill stranded on Longis Beach covered with a clear and sticky substance and reported it to Alderney Wildlife Trust (AWT). Veterinary nurse Kelly Huitson of Alderney Animal Welfare Society said despite immediate treatment, the bird died "most likely due to toxic shock from ingesting the substance as he preened". The veterinary report of fouling has prompted AWT staff and volunteers to monitor beaches for stranded wildlife and signs of pollution. Warning: This story contains an image some readers may find upsetting In 2013 a form of synthetic rubber called polyisobutylenes (PIBs) was discharged into the English Channel and led to the death of thousands of seabirds. A spokesperson for the AWT said: "Whilst the substance fouling Roy the razorbill has not been identified, it is similar to PIB." They asked the community to "remain vigilant in case the contaminant is part of a larger pollution event". Follow BBC Guernsey on X and Facebook. Send your story ideas to Plastic 'risks 8,000 island gannet nests' Alderney Puffin nests almost trebled since 2005 Seabird deaths 'worst' PIB spill Call for bird pollutant review Alderney Animal Welfare Society - Facebook Alderney Wildlife Trust
