Govt aims to raise over Rs2.8 trillion through auctions in three months

WEB DESK: In an effort to bolster its fiscal position, the government of Pakistan has set a target to raise Rs2.845 trillion over the next three months (February–April) of Fiscal Year 2024.

The funds will be garnered through the auction of various financial instruments, including market Treasury bills (MTBs) and Pakistan Investment Bonds (PIBs).

The government is particularly eyeing the auction of MTBs to secure Rs1.53 trillion during the February-April period, aiming to bridge the gap left by maturing amounts totaling Rs1.731 trillion.

To achieve this objective, the State Bank of Pakistan (SBP) has outlined plans to conduct six MTB auctions from December to February 2024.

In the upcoming month of February, two auctions are on the agenda. The first, scheduled for February 6, targets Rs480 billion, followed by the second auction on February 21, with a goal of Rs300 billion.

March will witness two auctions as well, with targets set at Rs225 billion each on March 6 and March 20.

Looking ahead to April, the government plans to hold two auctions. The first, scheduled for April 3, targets Rs150 billion, and the final auction of the review quarter is set for April 17, with a similar target of Rs150 billion.

Simultaneously, the State Bank of Pakistan (SBP) aims to raise an additional Rs1.315 trillion through the sale of Pakistan Investment Bonds (PIBs).

This comprehensive strategy includes Rs505 billion through the sale of fixed-rate PIBs, Rs480 billion via the PIBs floating-rate semi-annual auction, and an additional Rs330 billion through the sale of PIBs floating-rate quarterly bonds.

The auctions, spread across MTBs and PIBs, reflect the government’s proactive approach to managing its fiscal responsibilities and ensuring the financial stability of the nation during this fiscal quarter.

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