Government Plans to Secure Rs3.4 Trillion via MTBs and PIBs in 3QFY24

In an effort to meet financial obligations, the government of Pakistan has set its sights on raising a substantial Rs3.4 trillion in the upcoming three months of FY24 (January-March). The funds will be generated through a series of auctions involving Market Treasury Bills (MTBs), Pakistan Investment Bonds (PIBs) Fixed Rate, and PIBs Floating Rate.

Breaking down the targeted amounts, the government aims to secure Rs1.63 trillion through MTBs and Rs1.77 trillion through PIBs, bringing the total borrowing goal to Rs3.4 trillion.

To achieve the MTB target, the State Bank of Pakistan (SBP) has outlined plans to conduct six auctions within the Jan-Mar 2024 period. In January, two auctions are scheduled, the first on January 10 with a target of Rs100 billion and the second on January 24 with a target of Rs225 billion. February will see two auctions on February 06 (Rs480 billion) and February 21 (Rs300 billion), while March will host the remaining auctions on March 06 (Rs225 billion) and March 20 (Rs300 billion).

Simultaneously, the SBP aims to raise Rs1.77 trillion through PIBs, distributed across various categories. This includes Rs570 billion through the sale of PIBs Fixed Rate, Rs720 billion through PIBs Floating Rate Semi-Annual Auction, and an additional Rs480 billion through the sale of PIB (Floating Rate) Quarterly Auction.

As a noteworthy update, the Pakistan Stock Exchange (PSX) will now oversee the auctions of GOP Ijara Sukuk, introducing a new dimension to the financial landscape.