KARACHI: The central bank has announced to auction Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs) worth Rs1.575 trillion in August and October.
As per the auction calendar released by the State Bank of Pakistan (SBP), the government will collect Rs1.425 trillion through auctions of seven MTBs in August-October. Two auctions will take place in August and October each while three auctions will be held in September.
The MTB target for each auction ranges from a maximum of Rs300 billion (to be held on August 19) to a minimum of Rs125 billion (to be held on September 30).
Almost 85% of the total MTB auction target of Rs1.425 trillion for the three-month period represents the federal government’s ‘maturing amount’. This means the ‘additional requirement’ of the federal government for August-October is only Rs217 billion, or 15.2% of the auction target.
The government aims to borrow a total of Rs150 billion in August-October through PIBs of three, five, 10 and 20 years of maturity. The target for the three auctions – to be held on August 12, September 9 and October 7 – is Rs50 billion each.
