The government of Pakistan has set an ambitious target to generate revenue totaling Rs8.5 trillion over the next three months, spanning from November to January in FY24. This financial goal will be achieved through a series of auctions involving Market Treasury Bills (MTBs), Pakistan Investment Bonds (PIBs) Fixed Rate, and PIBs Floating Rate.
The breakdown of these targets is as follows:
T-Bills: The government aims to raise Rs6.061 trillion.
PIB (Fixed Rate): The target is set at Rs480 billion.
PIB (Floating Rate) Semi-Annual: An ambitious Rs840 billion.
PIB (Floating Rate) Quarterly: A substantial Rs1.12 trillion.
In total, the government seeks to accumulate Rs8.501 trillion through these auctions.
To achieve the MTBs target, the government plans to borrow Rs6.061 trillion during the November-January period in 2024. This is to offset the maturing amount of Rs7.662 trillion. To fulfill this objective, the State Bank of Pakistan (SBP) intends to conduct a total of seven MTB auctions during the said timeframe.
In November, three auctions are scheduled: the first on November 01 with a target of Rs975 billion, the second on November 15 with a target of Rs1.5 trillion, and the third on November 29 aiming to raise Rs900 billion.
For December, two auctions are planned: one on December 13 with a target of Rs2.1 trillion and another on December 27 with a target of Rs480 billion.
Moreover, two auctions are on the horizon for January: the first scheduled for January 10 with a target of Rs100 billion, and the last one, intended for the review quarter, will take place on January 24 with a target of Rs6 billion.
Additionally, the SBP has set its sights on raising Rs2.44 trillion by selling PIBs. This amount encompasses Rs480 billion through the sale of PIBs Fixed Rate, Rs840 billion through PIBs Floating Rate Semi-Annual Auction, and a noteworthy Rs1.12 trillion each through the sale of 2-year and 3-year PIBs in the Floating Rate Quarterly Auction.
It’s worth noting that the issuance of the 05-Year PIB has been postponed, with the re-opening of the 13-October issue continuing as planned.
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