Government's plan to secure Rs11.09 trillion from banks
The federal government has devised a strategy to procure Rs
11.09 trillion from the domestic banking system in the upcoming three months of
FY24 (August-October).
This substantial amount will be procured through auctions of
various security papers, including long-term Pakistan Investment Bonds (PIBs)
Fixed Rate, PIBs Floating Rate, GoP Ijara Sukuk Fixed Rental Rate (FRR), and
short-term Government of Pakistan Market Treasury Bills (MTBs).
As outlined in the auction calendar issued by the State Bank of
Pakistan (SBP), a major proportion of the targeted sum will be acquired through
the issuance of short-term government papers. The federal government is aiming
to collect approximately Rs 8.25 trillion through the auction of MTBs during
August to October 2024, in contrast to the maturing amount of Rs 8.905
trillion.
To meet the financing objective, a total of six MTBs auctions
have been planned by the SBP in the next three months. The distribution of this
target includes Rs 2.7 trillion for August, Rs 4.2 trillion for September, and
Rs 1.35 trillion for October 2023, all achieved through the sale of short-term
government papers.
Furthermore, the federal government intends to raise Rs 2
trillion through the issuance of long-term security papers in the same period.
This includes Rs 480 billion from the sale of PIBs Fixed Rate, Rs 640 billion
from PIBs Floating Rate Semi-Annual Auction, and Rs 880 billion through the
sale of 2-year and 3-year PIBs (Floating Rate) in Quarterly Auctions.
Likewise, the auction calendar highlights that the government
plans to procure Rs 510 billion through the sale of Government of Pakistan
Ijara Sukuk Variable Rental Rate (VRR), while targeting the sale of GOP Ijara
Sukuk Fixed Rental Rate (FRR) at Rs 330 billion.
Source: Business Recorder