Govt keeps treasury bill returns higher over policy rate

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Iqbal, S. (2026, October 15). Govt keeps treasury bill returns higher over policy rate. Dawn. https://www.dawn.com/news/2037216/govt-keeps-treasury-bill-returns-higher-over-policy-rate

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Dawn · collected 2026-10-15 · by Shahid Iqbal

Quick Summary

On Wednesday, the government conducted a treasury bill auction raising Rs417.6 billion through competitive bids and an additional Rs267.9 billion through non-competitive ones, totaling Rs685.5 billion. Despite the State Bank’s policy rate of 11.5%, all tenors of T-bills yielded higher returns. Investors, mostly banks, were cautious about domestic lending due to economic uncertainty and political instability, leading them to prefer government securities instead. The article highlights how this trend reflects investors’ reluctance to take risks amid current conditions and the growing challenge for policymakers in stimulating economic growth.
Written locally by qwen2.5:14b on 2026-10-15, using this article's own text rather than the other coverage of the same event (that is the story summary below).

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Written for “Treasury Bill Returns Policy” on 2026-10-15, grounded in this article and the 0 other(s) covering the same event.
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Leaning: leans left for article 81202 (high confidence, 2 verified quotes) · logged 2026-10-15

Story

📰 Treasury Bill Returns Policy
Economy/Business · 1 article(s) covering the same event.

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Claims extracted
18
sentences that state something as happening or true
Uncertain
6%
1 of 18 hedged ("reportedly", "may", "according to")
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Publisher signals
71/100
Dawn's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Economy/Business
Same framing elsewhere
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articles that frame the event the way this one does
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Dawn · 1675 article(s) · 3 correction(s) detected
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Who wrote this

Shahid Iqbal
7 article(s) here · 1 carrying a prediction
🔮 The IMF had forecast a growth rate of 3.5pc for FY27, but the finance minister said on Tuesday he hoped for a 4pc growth.
🔮 The growth trend could help the government achieve its annual remittance target of $44 billion for FY27.
2026-10-10 · assertive framing · Remittances rise 14pc to $10.9bn in July-Sept
🔮 Consumer Price Index-based inflation of 10.3 per cent in September clearly indicates that industry, businesses, and the general public will bear the brunt of these cost-push inflationary pressures.
2026-10-04 · assertive framing · Tight monetary policy likely to continue
🔮 Iran is now anticipating possible attacks from the US, raising concerns that oil prices could surge.
2026-09-27 · mixed framing · Inflation seen slowing to 10.75pc in September
🔮 State Bank Governor Jameel Ahmad on Friday launched the Pasban Remittance Reward Scheme, under which the banking industry will offer Rs16 billion in annual cash prizes to recipients of home remittances sent through formal channels, with no cost to the national exchequer.
2026-09-26 · assertive framing · Rs16bn bank-funded remittance reward scheme unveiled
🔮 Bankers anticipate a status quo, but some analysts believe the central bank will lift its policy rate by 50 basis points at the Monetary Policy Committee meeting.
2026-09-13 · mixed framing · State Bank in tight spot as inflation rises
Also by Shahid Iqbal
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 7 articles by Shahid Iqbal →

Topics

IMF KARACHI The World Bank the Gulf war the State Bank’s

Subjects

KARACHI GPE · 2× Dawn ORG · 1× IMF ORG · 1× Pakistanis NORP · 1× The State Bank ORG · 1× The World Bank ORG · 1× the State Bank’s ORG · 1× treasury ORG · 1×

Narrative

The government kept treasury bill rates almost unchanged in an auction held on Wednesday, but the returns on all tenors of T-bills remained higher than the State Bank’s policy rate of 11.5 per cent.
framing: assertive · carried by 1 article(s) · first seen 2026-10-15
🔮 The IMF had forecast a growth rate of 3.5pc for FY27, but the finance minister said on Tuesday he hoped for a 4pc growth.
2026-10-15 · Dawn
Govt keeps treasury bill returns higher over policy rate · assertive framing

Claims (18 extracted, 1 hedged)

The government kept treasury bill rates almost unchanged in an auction held on Wednesday, but the returns on all tenors of T-bills remained higher than the State Bank’s policy rate of 11.5 per cent. asserted
returns → keep → cent
The results showed that the government raised Rs417.6 billion through this auction and another Rs267.9bn through non-competitive bids, making a total of Rs685.5bn. asserted
government → show → Rs685.5bn
But investors, mostly banks, were eager to park their maximum liquidity in government papers as the option for domestic lending looks extremely limited. asserted
option → park → lending
According to financial experts, investors are shy of taking risks amid the Gulf war and the political uncertainty in the country. uncertain
investors → accord → country
Domestic investors have been hoping over the last three years for initiatives by the government to stimulate the economy. asserted
investors → hop → economy
The IMF had forecast a growth rate of 3.5pc for FY27, but the finance minister said on Tuesday he hoped for a 4pc growth. asserted
he → forecast → growth
The absence of domestic investments has created a serious problem for the country while policymakers are unable to bring them back into the economy. asserted
policymakers → create → economy
Poverty rising asserted
Poverty → rise → ?
The World Bank says poverty has been rising in the country and 48pc Pakistanis are now living below the poverty line. asserted
Pakistanis → say → line
“We are trying to protect the money already we have invested. asserted
we → try → money
The government has no idea how to stimulate a dormant economy mood,” said a businessman in Karachi. asserted
businessman → have → Karachi
The government relies heavily on bank money and the borrowing size has been increasing each year, piling up a huge domestic debt. asserted
size → rely → debt
The latest auction reflects both the government’s needs and banks’ eagerness to invest in securities. asserted
auction → reflect → securities
In FY26 the private sector had borrowed Rs1.4tr while in FY25 it was Rs1tr. asserted
it → borrow → FY25
Bankers said most of the amount borrowed by the private sector was meant for working capital; it means no long-term investment. asserted
it → say → investment
At the previous auction the largest increase of 75bps was recorded in the benchmark six-month treasury bills, with the rate rising to 12.45pc from 11.70pc in the previous auction held on Sept 16. asserted
rate → record → Sept
At the current auction the six-month T-bills noted a decline of 6bps to 12.39 per cent from 12.45 per cent in the previous auction, still 89 basis points higher than policy rate. asserted
bills → note → rate
The State Bank kept the return on T-bills almost 99 basis points higher than the interest rate at the previous auction and the same was maintained on Wednesday. asserted
same → keep → Wednesday
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