The federal government Wednesday raised some Rs 301.8 billion through auction of long term investment bonds. The State Bank of Pakistan (SBP) on February 20, 2019 conducted auction of Pakistan Investment Bond (PIB-Floating Rate) and Pakistan Investment Bond (PIB Fixed Rate). Bids worth Rs 164 billion were received for 10-year PIB-Floating Rate and bids amounted to Rs 80.275 billion were accepted at 70 basis points over the benchmark. The target of borrowing for PIB-Floating Rate was Rs 150 billion.

For PIB Fixed Rate, bids amounted to Rs 375.428 billion with realized value of Rs 324.871 billion were submitted for the sale of 3-, 5- and 10-year bonds. However, no bid was received for 20-year ponds. Overall, the federal government has accepted bids worth Rs 221.602 billion with realized value of Rs 192.318 billion as against target of Rs 50 billion of PIB Fixed Rate.

Cumulatively, the federal government has borrowed some Rs 301.8 billion though sale of PIBs Fixed Rate and Floating Rate as against total target of Rs 200 billion.

Copyright Business Recorder, 2019