Monday, December 5, 2022
HomeBusinessIn 3 months, Government plans to generate Rs5.875 trillion

In 3 months, Government plans to generate Rs5.875 trillion

KARACHI: The government plans to generate Rs5.875 trillion through the issuance of treasury bills and bonds till the end of December 2021, which is more than the Rs5.100 trillion maturities.

Between October and December, the State Bank of Pakistan (SBP) stated it will continue to host biweekly auctions for three, six, and twelve month Market Treasury Bills.

The seven auctions have a total goal of Rs5.050 trillion.

Also read: Zonergy and Punjab Government signed CSR Program agreement to uplift Local Community

The central bank would also issue Rs825 billion in Pakistan Investment Bonds with fixed and variable rates.

The SBP’s auction calendar showed that the major targets were allocated to the short to medium instruments followed by the long-term papers.

Latest targets also depict higher dependence on borrowing from T-bills, which are short-term.

The market remained keen on investing in the short-term papers, and the investment rose in three-month T-bills, primarily on the back of expectations of further increase in the interest rates in months to come.

Also read: Generation of power in Pakistan increased by 10.8% during 8MCY21

Analysts expect the central bank to continue its gradual and measured increase in policy rate given imbalances in the external account and high inflation readings. Consumer price index inflation is also expected to remain beyond 9 percent in coming months as base effect phases out. The SBP is likely to hike policy rate by another 25 basis points next month.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments