Govt to borrow Rs5 trillion from banks in three months : vim

Govt to borrow Rs5 trillion from banks in three months


Govt to borrow Rs5 trillion from banks in three months
Business
May 4, 2021
KARACHI: The government planned to borrow Rs5 trillion from banks in three months (May-July) to bridge gap in revenue and expenditures, the central bank’s auction calendar showed on Monday.
The government planned to raise Rs4.1 trillion through borrowing from market treasury bills and Rs900 billion from Pakistan investment bonds (PIBs) by the end of May.
The State Bank of Pakistan would sale Rs375 billion worth of three-, five- 10-, 15-, 20-, and 30-year fixed rate PIBs and Rs210 billion worth of five, and Rs210 billion worth of three-year floating rate PIBs. It would also auction Rs105 billion worth of a two-year floating rate PIB in the same period. The latest auction calendar showed the government wants to boost supply of long-term papers to meet its funding requirements, which is evident from the fact that it has increased the auction targets (amount) for the floating rate PIBs.

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