The State Bank of Pakistan (SBP) has appointed 10 financial institutions as Primary Dealers (PDs) and two as Special Purpose Primary Dealers (SPDs) for fiscal year 2026-27, as banks continue to finance the government’s borrowing through the domestic debt market.

United Bank (UBL), National Bank (NBP) and Bank Alfalah emerged as the top three performing primary dealers during FY2025-26, according to a central bank notification on Thursday.

The appointments come as the government remains heavily reliant on domestic borrowing to meet its fiscal needs, making primary dealers critical players in the auction, distribution and trading of government securities.

The SBP selected the institutions after evaluating applications against criteria prescribed under the Primary Dealer system rules. The 10 institutions appointed as Primary Dealers for FY2026-27 are UBL, NBP, Bank Alfalah, Habib Bank, Habib Metropolitan Bank, MCB Bank, the Bank of Punjab, Pak Oman Investment Company, JS Bank and Citi Bank NA, Pakistan Branch.

The Central Depository Company of Pakistan Limited (CDC) and National Clearing Company of Pakistan Limited (NCCPL) have been appointed as Special Purpose Primary Dealers.

The SBP said UBL, NBP and Bank Alfalah were the top three performing PDs during FY2025-26. Performance rankings of other PDs and SPDs will be communicated individually, the notification said.

Primary dealers are key participants in the government securities market, helping raise funds through treasury bills and Pakistan Investment Bonds while supporting liquidity and trading in the secondary market.

The appointments were made under the Primary Dealer system rules issued through DMMD Circular No 07 dated April 12, 2021. The central bank invited applications for PDs, PPDs and SPDs for FY27 through a circular on May 7, 2026.

The appointment of major commercial banks, an investment company and key market infrastructure institutions reflects the broad framework through which Pakistan’s government securities market operates.

Primary dealers serve as the government’s key intermediaries in the domestic debt market, participating in auctions, helping mobilise financing and providing secondary market liquidity. They facilitate distribution of government debt instruments and contribute to price discovery, making them central to the market’s smooth functioning. Their role is particularly important as the government relies heavily on domestic borrowing to finance its fiscal requirements. By purchasing government securities and channelling them to banks and institutional investors, primary dealers support the government’s borrowing programme while ensuring an active and liquid market for Treasury Bills and Pakistan Investment Bonds.