SBP Appoints Primary Dealers for Government Securities for 2024-25
The State Bank of Pakistan (SBP) has announced the appointment of nine banks and one financial institution as Primary Dealers (PDs) for the investment in Government Securities, including Medium Term Bills (MTBs) and Pakistan Investment Bonds (PIBs) for the fiscal year 2024-25.
Following a rigorous evaluation process, the SBP selected the following institutions as Primary Dealers:
- Bank Alfalah Limited
- National Bank of Pakistan
- Habib Bank Limited
- Habib Metropolitan Bank Limited
- United Bank Limited
- The Bank of Punjab
- MCB Bank Limited
- JS Bank Limited
- Citi Bank N.A. – Pakistan Operations
- Pak Oman Investment Company Limited
Additionally, two institutions have been appointed as Special Purpose Primary Dealers (SPPDs):
- Central Depository Company of Pakistan
- National Clearing Company of Pakistan Limited
These dealers are entrusted with key roles to enhance participation in primary auctions, improve distribution, diversify the investor base, and develop the market for government securities.
Key Responsibilities
The appointed dealers are required to actively participate in the primary market by bidding in SBP-conducted auctions of Government Securities. They will also be responsible for distributing Government Securities to non-PD banks and other retail or institutional clients.
Furthermore, the PDs, SPPDs, and SPDs will play a vital role in developing the Government Securities market. They will work to enhance liquidity, increase turnover, and broaden the investor base by creating awareness among investors and undertaking other significant initiatives. To fulfill these responsibilities effectively, the dealers must continuously upgrade their infrastructure, including both physical equipment and skilled manpower.
The SBP’s appointment of these institutions aims to strengthen the market for Government Securities and ensure a more diversified and robust investor base for the fiscal year 2024-25.
