The federal government on Wednesday raised Rs 507 billion through auction of short-term government papers as against target of Rs 300 billion to meet its financial requirements. The State Bank of Pakistan (SBP), on August 30, 2017, conducted auction for the sale of 3-month, 6-month and 12-month Market Treasury Bills (MTBs) and received bids amounted to Rs 530.820 billion with a realized amount of Rs 522.112 billion.
Most of bids were received for 3-months period T-bills, which fetched bids worth Rs 438.522 billion. Some Rs 90.285 billion bids were received for 6-month and Rs 2.013 billion for 12-months short-term papers. Out of total bids, the federal government borrowed some Rs 515.320 billion (realized value Rs 507.020 billion) through auction of MTBs. The borrowed amount is about Rs 207 billion higher than the target of Rs 300 billion set for this auction. The targeted amount included Rs 30.676 billion additional requirement and Rs 296.324 billion maturity.
Bids amounting to Rs 426.146 million (realized amount) were accepted for 3-month and its cut-off yield was remained stable at 5.9910 percent. Cut-off yield of 6-month t-bills was 6.0109 percent with accepted bids of Rs 80.861 billion. An amount of Rs 12.262 million was borrowed through 12-months T-bills auction at 6.0386 percent.