The market treasury bills (MTBs) and Pakistan Investment Bonds (PIBs) are instruments that the federal government uses to raise money from the commercial banks for budget financing. This figure has further dipped to Rs1.4 trillion or 25% of total borrowings through short-term securities. The total size of the treasury bills borrowings has increased to Rs5.6 trillion including Rs284 billion worth of treasury bills that are bought by the SBP. These numbers do not suggest that the government preferred three and six month’s borrowings. The report showed that the federal government floated five-year tenor PIBs at 10.9% rate in December – below the June pricing of 13.9%.

Source: The Express Tribune March 15, 2020 03:56 UTC