KARACHI – August 6, 2025:
The Pakistani rupee continued its winning streak on Tuesday, recording gains for the tenth consecutive trading session against the US dollar. In the inter-bank market, the local currency appreciated by another nine paisa, closing at 282.57 compared to Monday’s rate of 282.66.
According to a market update by AKD Research, the rupee has now appreciated by Rs2.40 over the past ten sessions. However, despite the recent upward momentum, the rupee remains 1.42% weaker against the dollar on a calendar year-to-date basis. In contrast, it has gained 0.42% since the start of the current fiscal year, as per Insight Securities.
Amid this backdrop, the State Bank of Pakistan (SBP) unveiled its domestic borrowing calendar for the August to October 2025 period. The central bank plans to raise a staggering Rs6.175 trillion through various debt instruments to support the government’s fiscal operations and manage liquidity.
The borrowing plan includes Rs3.675 trillion through Market Treasury Bills (MTBs) and Rs2.5 trillion via Pakistan Investment Bonds (PIBs). According to the SBP, seven MTB auctions are scheduled in the three-month window, with targets ranging between Rs225 billion and Rs700 billion per auction. These auctions will take place on August 6, August 20, September 3, September 17, October 1, October 15, and October 29, covering tenors of one, three, six, and 12 months.
For long-term financing, Rs2.5 trillion will be raised through PIBs—Rs1.1 trillion via fixed-rate bonds and Rs1.4 trillion from floating-rate bonds. The fixed-rate bonds will be offered on August 1, September 4, and October 14, with respective targets of Rs300 billion, Rs400 billion, and Rs400 billion. These will be issued in tenors of two, three, five, 10, and 15 years.
Floating-rate PIBs, all with a 10-year maturity, will be auctioned every two weeks from August 6 through October 29, with each auction aiming to raise between Rs150 billion and Rs250 billion.
Analysts say the aggressive borrowing strategy underlines the government’s growing dependence on domestic sources to plug the budget deficit—especially given the IMF’s restrictions on direct borrowing from the central bank. While indirect borrowing also contributes to inflationary pressures, it provides a more transparent approach in contrast to simply printing money.
Meanwhile, the domestic gold market saw a downward correction on Tuesday, even as international prices held steady. According to the All Pakistan Sarafa Gems and Jewellers Association, gold prices in Pakistan dropped by Rs1,500 per tola, bringing the new rate to Rs358,000. The price of 10-gram gold also fell by Rs1,286 to settle at Rs306,927.
This decline followed a brief uptick on Monday when gold rates had climbed by Rs500 per tola, hitting Rs359,500.
In international markets, spot gold was trading slightly higher at $3,376.80 per ounce as of 1347 GMT, after touching its highest level since July 24 earlier in the week. US gold futures also saw a similar 0.1% increase, trading at $3,430 per ounce.
