Govt to raise Rs4.7 trillion through T-bills auction in three months

KARACHI: The government will raise Rs4.7 trillion for budget financing through the sale of treasury bills during the first three months of 2022.

According to the auction targets for the next three months (January-March 2022) issued by the State Bank of Pakistan (SBP) on Wednesday, the government would auction the Market Treasury Bills (MTBs) worth Rs4.4 trillion and Pakistan Investment Bonds (PIBs) worth Rs300 billion.

Mainly, the government auctions treasury bills for budget financing but outstanding repayment or matured amount has exceeded manifold; therefore, most of the funds raised through these auctions would be used for repayment of matured amounts.

The SBP said the matured amount of the previous MTBs had exceeded Rs4.53 trillion as this amount was Rs128 billion still higher than the target amount of Rs4.7 trillion.

However, the government would meet this gap through the auction of PIBs. The matured amount against PIBs is zero, at present.

The central bank will also raise Rs225 billion through the sale of Ijara Sukuk during the next three months.

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