Business Desk 
Nov 08, 2024
By selling Treasury bills and bonds from November to January, the government of Pakistan is willing to generate Rs8.7 trillion to fulfil its budgetary-oriented liabilities and refinance debt.
The auction result issued by the State Bank of Pakistan (SBP) on Thursday showed that Rs5.5tn will reportedly be raised by auctioning short-term papers or market T-bills with maturities of three, six, and 12 months.
Meanwhile, the remaining Rs3.2tn will be minted from commercial banks by selling fixed and floating-rate Pakistan Investment Bonds (PIBs) with maturities of two, three, five, and 10 years.
As reported by The News, the estimated maturity amount for T-bills and PIBs during the three months from November to January is Rs6.85tn.
Read more: Electricity consumers in Pakistan to pay Rs8.7bn for inactive power plants
The auction target the government is planning to achieve by the auction shows its requirements to meet higher fiscal demands, debt refinancing requirements, or measures to stabilise the economy, said Saad Hanif, head of research at Ismail Iqbal Securities.
The monetary policy statement issued by the SBP underlined a significant plunge in net budgetary borrowing from the banking system.
On the other hand, the amount credited to the non-government sector increased. After receiving profits from the SBP, the government trimmed its borrowing from banks and started buy-back operations for its outstanding debt securities.
Government's this deviated approach has expanded banks' capacity to extend credit to the private sector. The State Bank’s liquidity injections also took a substantial dip, as validated by lesser outstanding stock of open market operations.
