The State Bank of Pakistan (SBP) has appointed 12 banks as Primary Dealers (PDs) of government securities and two companies as Special Purpose Primary Dealers (SPDs) for Financial Year 2022-23.

According to a circular issued by the Domestic Market and Monetary Management Department of SBP after evaluation of received applications under the laid-down criteria, the central bank has selected 12 applicants for appointment as primary dealers while two other institutions were selected for the role of SPDs of government securities-PIB and MTB.

Back in May, the central bank invited applications from eligible institutions for appointment as Primary Dealer/Preliminary Primary Dealers/Special Purpose Primary Dealers of Government Securities including Pakistan Investment Bonds and Market Treasury Bills for the fiscal year 2022-23.

Meanwhile, Primary Dealers appointed for FY 2022-23 included Bank Al-Falah Limited, Habib Bank Limited, National Bank of Pakistan, United Bank Limited, MCB Bank Limited, JS Bank Limited, Standard Chartered Bank (Pakistan) Limited, Pak Oman Investment Company Limited, The Bank of Punjab, Citi Bank N.A-Pakistan Operations, Industrial and Commercial Bank Of China-Pakistan Operations and Habib Metropolitan Bank Limited.

Moreover, the National Clearing Company of Pakistan Limited and Central Depository Company of Pakistan were appointed as Special Purpose Primary Dealers.

The performances of PDs, PPDs and SPDs were evaluated by the central bank in accordance with their respective Performance Evaluation Criteria and the SBP announced top-performing PDs and PPDs via a Circular on an annual basis.

The top three performing PDs during FY 2021-22 were Bank Al-Falah Limited, Habib Bank Limited and National Bank of Pakistan, the circular stated.

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All the dealers are supposed to actively participate in the primary market by bidding in the auctions of Government securities as conducted by SBP from time to time with a view to improve participation in primary auctions, enhance distribution, diversifying investor base and develop market for government securities.

They also distribute government securities to non-PD banks and other retail or institutional clients. Additionally, PDs and PPDs shall also act as market makers in Government securities by quoting two-way prices in the secondary market.