The federal government has planned to borrow some Rs 1.25 trillion through the sale of Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs) during the fourth quarter (April-June) of current fiscal year (FY15).
Although, the federal government has reduced its borrowing from the State Bank of Pakistan, it is still relying on scheduled banks to meet the fiscal deficit. The State Bank of Pakistan (SBP) on Wednesday has issued two different auction calendars for the sale of PIBs and MTBs during April-June of FY15.
The federal government intends to borrow some Rs 150 billion through long-term investment bonds. This amount will be collected through three auctions and the first auction will be held on April 8, second on May 6 and the third auction for the sale of 3-year, 5-year, 10-year and 20-year PIBs on June 3, 2015 to raise Rs 150 billion. The targeted amount includes a maturing amount of Rs 5.847 billion and an additional requirement of Rs 144.153 billion.
In addition, as per MTBs auction calendar, some Rs 1.1 trillion will be borrowed through the sale of 3-month, 6-month and 12-month T-bills. To get this amount some seven auctions have been planned. The first auction was held on April 1, and accordingly, the government borrowed some Rs 76 billion against the target of Rs 100 billion.
Two more auctions will be held in April for borrowing Rs 500 billion. Similarly, Rs 300 billion and Rs 125 billion will be raised through fourth and fifth MTBs auction to be held on May 13 and May 27, 2015 respectively. The federal government has also planned to borrow some Rs 75 billion through the sale of T-bills in June this year. During the fourth quarter of FY15 the MTBs maturing amount stood at Rs 1.11 trillion.
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