The cash-strapped government has raised new debt worth Rs908 billion by selling debt securities, including Pakistan Investment Bonds (PIBs) and treasury bills (T-bills), to domestic commercial banks. This substantial borrowing through T-bills helped overcome the financing gap faced due to banks’ demands for higher rates of return on longer-tenure PIBs auctioned on Tuesday. The stable markup rate compared to the previous auction held two weeks ago allowed the authorities to secure higher financing. It raised another Rs221.9 billion through selling 12-month paper at a cut-off yield of 18.54%, down by 41 basis points from the previous auction. It raised another Rs13.90 billion against 10-year PIBs at 14.25%, reduced by five basis points from the previous auction.
