SBP to raise Rs.2.10 trillion from Government Securities in Next 2 Months

February 28, 2020 (MLN): The State Bank of Pakistan (SBP) issued a schedule for the month of March – April 2020 for the auction of government Treasury Bills and Bonds through which it intends to raise Rs. 2.10 trillion.

The maturing amount during the period is Rs.2.061 trillion, which indicates a net borrowing requirement of Rs.38.37 billion by the government.

The SBP plans to raise Rs.1.80 trillion from the auction of short term Market Treasury Bills (MTB) and Rs.300 billion from longer term Pakistan Investment Bonds (PIB).

The SBP revised the target amount for MTBs for the month of March from Rs.600 billion to Rs.800 billion.

The amount to be raised from PIBs is further divided into two categories, i.e. fixed and floating bonds. The SBP is targeting Rs.200 billion from the fixed rate bonds of 3, 5, 10 and 20 years while Rs.100 billion will be raised through floating rate bonds of 10 Years.

The Fixed Rate Bonds to be issued will be the re-opening of the recently issued bonds of Sep 19, 2019 while the Floating rate bond will be from August 22, 2019.

A breakup of the maturing amount shows, T-Bills worth Rs.1.672 trillion are maturing during the period
along with PIBs worth Rs.389 billion.

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