25 C
Tuesday, October 4, 2022
Generic filters
HomeNationalRepayment of loans and financing budget deficit: Govt to borrow Rs6.775tn in...

Repayment of loans and financing budget deficit: Govt to borrow Rs6.775tn in Aug-Oct

Fuel subsidies, delay in IMF program and lack of external financing contributed to rise in public debt

For repayment of previous loans and financing budget deficit, the government will borrow Rs6.775 trillion from the domestic market during August-October period.

Increased spending requirement for fuel subsidies, delay in resumption of International Monetary Fund (IMF) program and lack of external financing have contributed to the rise in the public debt.

- Advertisement -

A total of Rs5.350 trillion would be raised by auction of Market Treasury Bills (MTBs) and Rs1.125 trillion would be availed by sales of Pakistani Investment Bonds (PIBs).

A total of Rs6.384 trillion worth of PIBs will mature in August-October.

According to the auctions calendar of State Bank of Pakistan (SBP), the central bank would sell Rs525 billion worth of fixed rate PIBs, Rs150 billion worth of five-year, Rs150 billion worth of 10-year floating rate PIBs. It would also auction a three-year Rs150 billion, and a two-year Rs150 billion floating rate of PIB, Rs210 billion worth of variable rental rate five-year Ijara Sukuk and Rs90 billion worth of fixed rental rate domestic Islamic bonds.

- Advertisement -

The Monetary Price Committee of the SBP will meet on August 22 and benchmark policy rate has been expected to be kept at 15 percent unchanged, a local media report quoted a securities expert as saying.



Please enter your comment!
Please enter your name here

Top news

Related articles