Govt to sell debt worth Rs2.875trln

KARACHI: The government plans to borrow Rs2.875 trillion from banking system to finance the budget deficit by selling treasury papers, an auction calendar published by central bank showed on Wednesday.

According to State Bank of Pakistan’s (SBP) document the government aims to sell Market Treasury Bills (MTBs), Pakistan Investment Bonds (PIBs) for next three months and Government Ijara Sukuk (GIS) for next two months.

The government was eyeing to raise Rs2.275 trillion through the sale of MTBs and Rs375 billion through PIBs, while another Rs225 billion by auctioning GIS.

It must be noted the government has to pay back Rs1.8 trillion and Rs101 billion on account of maturing short- and long-term debts, respectively.