UBL

The SBP Primary Dealers for fiscal year 2026-27 have been announced, with the State Bank of Pakistan (SBP) appointing 10 financial institutions and two Special Purpose Primary Dealers (SPDs) to facilitate the government’s domestic borrowing programme. The appointments underscore the critical role commercial banks and financial institutions play in financing Pakistan’s fiscal deficit through the domestic debt market. According to a notification issued by the central bank on Thursday, United Bank Limited (UBL), National Bank of Pakistan (NBP) and Bank Alfalah emerged as the top three performing Primary Dealers during FY2025-26 based on their overall performance in the government securities market. The appointments come at a time when the federal government continues to rely heavily on domestic borrowing to meet its financing requirements, making Primary Dealers essential participants in the issuance, distribution and trading of government debt instruments. SBP Names 10 Primary Dealers After evaluating applications submitted under the Primary Dealer System Rules, the SBP selected the following institutions as Primary Dealers (PDs) for FY2026-27: In addition, the Central Depository Company of Pakistan Limited (CDC) and the National Clearing Company of Pakistan Limited (NCCPL) have been appointed as Special Purpose Primary Dealers (SPDs) for the new fiscal year. The SBP said the appointments were made after assessing applications against the eligibility criteria outlined in the Primary Dealer System Rules. UBL, NBP And Bank Alfalah Lead Performance Rankings The central bank recognised UBL, NBP, and Bank Alfalah as the best-performing Primary Dealers during FY2025-26. According to the notification, these three institutions achieved the highest overall performance among participating dealers in supporting the government’s domestic debt programme. The SBP added that detailed performance rankings of the remaining Primary Dealers and Special Purpose Primary Dealers will be communicated individually to the respective institutions. Key Role In Government Borrowing Primary Dealers play a central role in Pakistan’s financial system by acting as intermediaries between the government and investors in the domestic debt market. They participate in auctions conducted by the State Bank of Pakistan for Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs), enabling the government to raise funds for budgetary financing. Beyond participating in auctions, Primary Dealers also help distribute government securities among banks, financial institutions and other investors while supporting liquidity in the secondary market. Their active participation contributes to efficient price discovery and ensures that government securities remain tradable after issuance. Supporting Pakistan’s Debt Market The government’s growing reliance on domestic borrowing has increased the importance of the SBP Primary Dealers system. As Pakistan finances a significant portion of its fiscal deficit through Treasury Bills and long-term Pakistan Investment Bonds, Primary Dealers serve as the backbone of the domestic debt market. By purchasing government securities during auctions and facilitating their subsequent trading, these institutions help maintain liquidity and investor confidence in the market. Financial analysts note that an efficient Primary Dealer network strengthens the government’s ability to secure financing at competitive market rates while ensuring the smooth functioning of Pakistan’s debt market. Selection Made Under SBP Rules The appointments were made under the Primary Dealer System Rules issued through DMMD Circular No. 07, dated April 12, 2021. Earlier this year, the SBP invited applications for the appointment of Primary Dealers (PDs), Prospective Primary Dealers (PPDs) and Special Purpose Primary Dealers (SPDs) for FY2026-27 through a circular issued on May 7, 2026. Following a comprehensive evaluation process, the central bank finalised the appointments based on prescribed eligibility requirements and performance criteria. Broad Representation Across Financial Sector The latest list of Primary Dealers reflects broad participation from Pakistan’s banking and financial services industry. The selected institutions include large commercial banks, an investment company, an international bank operating in Pakistan, and two major financial market infrastructure organisations. The inclusion of the Central Depository Company (CDC) and the National Clearing Company of Pakistan Limited (NCCPL) as Special Purpose Primary Dealers highlights the growing importance of financial market infrastructure in supporting the government’s debt management framework. Why Primary Dealers Matter Primary Dealers perform several important functions in Pakistan’s government securities market. They participate directly in government debt auctions, ensuring sufficient demand for Treasury Bills and Pakistan Investment Bonds. They also facilitate the distribution of these securities to institutional investors and support trading in the secondary market, helping maintain market liquidity. Their role is particularly significant at a time when the government continues to depend on domestic borrowing as a major source of budget financing. An active and competitive network of SBP Primary Dealers enables the government to mobilise funds efficiently while promoting transparency, liquidity and stability in Pakistan’s domestic debt market.