Government set to borrow Rs. 4.2 trillion from Banks

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Government set to borrow Rs. 4.2 trillion from Banks

In the latest Auction calendar for T-Bills and PIB, State Bank of Pakistan has set a borrowing target of Rs. 4.25 trillion for the October to December period of the current year.

SBP aims to borrow Rs. 3.8 trillion from T-Bills auction, meeting the short term borrowing needs of the Government. The maturing amount of the previous borrowing stands at Rs. 4.4 trillion. Hence, the Government sets to reduce its borrowing from the Banking sector. However, the actual outcome of the auction will set the real tone.

Furthermore, the Government has a target to borrow Rs. 300 billion during the quarter through Long Term PIB Auction ranging from 3 years to 20 years period, essentially rolling over previously borrowed amount. While additional Rs. 150 billion will be raised through the Floating rate Pakistan Investment Bond (PIB).

 

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