The State Bank of Pakistan (SBP) has issued two calendars for the sale of Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs). According to these calendars, the federal government has planned to borrow a tentative amount of Rs 4.925 trillion from banking sector during third quarter of this fiscal year to fulfill its financial requirements. The planned borrowing during the third quarter of FY18 is some 29 percent higher than previous quarter. During October-December of FY18, the federal government''s borrowing target was Rs 3.8 trillion.
According to the SBP, the federal government is intending to borrow Rs 200 billion through the sale of PIBs. First auction of 3-, 5-, 10- and 20-year long-term investment bonds will be held on January 24, 2018 with a target amount of Rs 50 billion. Another, Rs 50 billion will be raised through second auction to be held on February 21, 2018 and third auction of PIBs will be held on March 21, 2018 with tentative target of Rs 100 billion. In addition, the government has planned to borrow Rs 4.725 trillion from banking sector through the sale of Pakistan Market Treasury Bills of 3-month, 6-month & 12-month in Jan-March of FY18. Auction for MTBs will be held fortnightly and total 7 auctions have been announced by the State Bank for the third quarter of current fiscal year. The targeted amount includes Rs 4.563 trillion of maturing amount and an additional amount of Rs 161.582 billion.
Some Rs 2.825 trillion will be raised through three auctions in January 2018. An amount of Rs 1.45 trillion in February 2018 and Rs 450 billion will be borrowed in March 2018 through the sale of short-term government papers.