KARACHI: June 2025 — The State Bank of Pakistan (SBP) has announced a major technological shift in how government securities are traded and auctioned. In a recent circular, the central bank confirmed that all auctions of Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs), including buyback auctions, will now be conducted through the upgraded PRISM+ platform, starting this month.
The move is aimed at streamlining operations and enhancing transparency in the domestic financial market.
Transition to PRISM+ for Government Auctions
According to the SBP, all eligible institutions will be required to submit their bids for MTBs, PIBs, and related buybacks directly through PRISM+. Each bid must be tagged with one or more government securities, and the face value of the bid will be equivalent to the face value of the tagged securities.
PRISM+ will automatically calculate the realized value of government securities based on applicable revaluation rates, market prices, and standard haircuts. If multiple securities are tagged in a single bid, the system will allocate those with the shortest remaining maturity first on a pro-rata basis.
Open Market Operations and Corridor Facilities
The SBP also announced that all Conventional Open Market Operations (OMOs)—including injections and mop-ups—will now be conducted through PRISM+. However, Shariah-compliant OMOs and Bai Muajjal operations will continue under the existing mechanisms.
Additionally, Conventional Reverse Repo (Ceiling) and Repo (Floor) facilities are being migrated to the TMON/X platform, while Shariah-compliant corridor operations will remain unchanged.
Secondary Market Trading Now on PRISM+
The PRISM+ platform is not limited to primary auctions; it also enables secondary market trading of government securities. All government securities held in SBP’s custody will be available for outright and repo-based trading through the platform.
Furthermore, PRISM+ introduces a mechanism for when-issued trading of PIB-Fixed coupon bonds, allowing participants to trade these bonds before their official issuance.
Encouraging Market Participation
The SBP has urged all market participants to take full advantage of PRISM+’s expanded capabilities. The new platform is expected to foster a more dynamic, efficient, and transparent government securities market in Pakistan.
This move marks a significant step in the central bank’s ongoing efforts to modernize Pakistan’s financial infrastructure and promote digital transformation in capital markets.
