KARACHI: The government seeks to raise Rs2.6 trillion through auction of treasury bills in the next three months in addition to lifting Rs470 billion through Pakistan Investment Bonds (PIBs).
The State Bank of Pakistan (SBP) released the auction calendar for both the T-bills and PIBs auction on Friday announcing its plan to raise Rs2.6 trillion to retire maturing amount of Rs2.275 trillion through the T-bills.
The SBP also released calendar for the auction of PIBs to be held during the period between March and May and is planning to raise Rs470 billion through these instruments, which include Rs320 billion on fixed interest rate and Rs150 billion on floating interest rates.
However, this amount is higher than the maturing amount of Rs389 billion. The government would raise additional Rs81 billion through PIBs indicating the rising need of liquidity.
The financial circles believe the government will have no other option but to continue borrowing from banks during the entire financial year.