Government raises Rs161b through PIBs
Auctions three to ten-year bonds to commercial banks
KARACHI:
The government on Wednesday raised financing of Rs161 billion through the auction of three to 10-year Pakistan Investment Bonds (PIBs) to commercial banks against the target of Rs125 billion, adding to domestic debt which is already at high levels.
More importantly, banks - whose deposits grew 16% to Rs17.95 trillion in May compared to the same month of last year - offered three times the amount to buy PIBs at Rs376 billion compared to the government’s target to raise Rs125 billion through the auction.
The banks higher participation suggests they have ample liquidity, as shown by growth in deposits, and are desperate to invest it even at a low rate of return.
PPP to become party in SC petition against SBP governor
“PPP would ensure the governor does not leave the country until SC reached a decision”
ISLAMABAD:
The Pakistan Peoples Party (PPP) on Wednesday announced it will become a party in a petition filed in the Supreme Court that seeks to declare appointment of the central bank governor illegal.
Former finance minister and PPP leader Senator Saleem Mandviwalla accused the SBP governor Dr Reza Baqir of causing a loss of Rs1 trillion to the exchequer by setting interest rate too high at 13.25%.
“The governor SBP Dr Reza Baqir robbed the government of Rs700 billion by setting interest rate at 13.25%,” Senator Saleem Mandviwalla said while addressing a press conference at Sindh House, Islamabad.
Imagine yourself as the newly minted finance minister. Given the unceremonious exit of your predecessor, you are unsure of your tenure.
Regardless, you have high confidence in your abilities. You understand the issues and have your heart set on making structural changes with lasting effects on the bottom of the pyramid rather than the bottom line of the commercial banking industry.
Here are the facts: firstly, we are a cash society with about Rs6.5 trillion outside the banking system one of the highest in the world. You need a plan to bring this into the system to trigger a multiplier effect on bank lending.
Daily Times
June 7, 2021
The Central Directorate of National Savings (CDNS) has received a fresh deposit of Rs700 billion in the last 11 months from July 1 to May 31, in the current fiscal year 2020-21.
The CDNS has set Rs 249 billion annual collection target from July 1 to June 30 for the year 2020-21 as compared to Rs352 billion for the previous year’s 2019-20 to enhance savings and promote saving culture in the country, a senior official of CDNS told APP here.
The CDNS had set Rs352 billion annual collection target for the year 2019-20 as compared to Rs350 billion for the previous year’s 2018-19, he said.