The instrument is part of the government’s broader debt management strategy aimed at reducing short-term refinancing risk, encouraging Islamic finance and expanding the country’s long-term investment landscape.
“This is a major step forward in making Pakistan’s financial system stronger and more resilient,” the country’s finance minister, Muhammad Aurangzeb, said in a statement.
“We are introducing new, smart ways of borrowing that reduce risk and give investors more options,” he added. “Our aim is to manage public debt responsibly, promote Islamic finance and attract more long-term investment to support the country’s economic growth.”
The ministry noted the auction saw declining yields across other government securities, reflecting market optimism over moderating inflation and expectations of lower interest rates.
It said the average maturity of domestic debt had also risen from 2.7 years to 3.75 years, easing near-term repayment pressure.
