Government to borrow Rs. 7 trillion from Commercial Banks

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Government to borrow Rs. 7 trillion from Commercial Banks

  • Government sets a target for Borrowing in the form of T-Bills and Pakistan Investment Bonds(PIBs)
  • Borrowing includes roll-over of maturing amount of Rs. 5.5 trillion from previously issued Instruments

The State Bank of Pakistan has issued Auction Calendar for Market Treasury Bills (MTB)’s and Pakistan Investment Bonds (PIB)’s for the quarter ending on September 2019.

The total target amount to be raised through T-Bills is projected at Rs. 6.3 trillion which includes roll-over of the maturing amount of Rs.5.06 trillion from previous issues.

Similarly, SBP has set a target of borrowing Rs. 300 Billion from long term fixed rate PIBs and Rs. 400 billion from 10-years Floating rate PIB.

SBP has discontinued the 3 and 5 years maturity Floating rate PIBs and has only set a target for 10-years floating rate Government Bond.

Government’s borrowing from Commercial Banks is set to increase as it has stopped borrowing directly from State Bank of Pakistan effective from 1st July. The Government borrowing from the State Bank of Pakistan increase to an all-time high of Rs. 3.3 trillion at June-19 end.

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