Govt to raise Rs4.8tr via T-bills, bonds auction

The government plans to borrow app­roximately Rs4.8 trillion through banks and capital markets during the Sept­e­mber-November period to meet its financing needs, amid rising fiscal pressures and the economic impact of recent floods. According to data relea­sed by the State Bank, the borrowing includes Rs2.875tr through Trea­su­­ry Bills and Rs2tr through Pakistan Investment Bonds (PIBs). Of the PIB target, Rs1.2tr will be raised through fixed-rate bonds and Rs750bn via floating-rate instruments. The T-bill auction sche­dule indicates the government aims to raise Rs900bn through 12-month bills and Rs750bn each from six- and three-month papers. An additional Rs475bn will be generated through one-month T-bills. In addition to bank borrowing, the government has increasingly tapped the ca­­pital market. On August 17, it raised Rs119bn by aucti­o­ning one- to five-year sukuk through the PSX. Earlier, it raised Rs2tr through Sukuk and Rs1.4tr via PIBs at the PSX on December 5, 2024.