In gross, the government is targeting to borrow almost Rs7 trillion from commercial banks in the next three months. The government plans to raise the funds by auctioning debt securities like T-bills and Pakistan Investment Bonds (PIBs) to commercial banks. Earlier, they planned to directly borrow from commercial banks without going into competitive bidding for the sovereign debt instruments to get the required growing funds in a speedy way. At the same time, it will return around Rs5.5 trillion to banks against maturing debt in the three months. Apart from that, it has targeted raising another Rs1.02 trillion by selling two to 10-year PIBs to commercial banks in the period.
Source: The Express Tribune March 12, 2023 06:51 UTC