KARACHI: Pakistan has raised a record Rs. 1.2 trillion through a government bond auction, including the country’s first 15-year zero-maturity bond, an instrument that pays no annual interest but provides a lump sum at maturity.
The new bond structure has received strong demand, raising more than Rs. 47 billion, and is being hailed as a breakthrough in public debt management.
Finance Minister Muhammad Aurangzeb said the move is part of a smart, diversified borrowing strategy that will ease repayment pressures and boost financial market confidence.
By introducing products that are long-term and Islamically compliant, the government aims to provide alternative investment opportunities, especially for pension funds and insurers, to broaden the domestic investor base.
Officials also noted a broad decline in yields on all government bonds, which pointed to improving macroeconomic sentiment and expectations of a period of monetary easing.