SBP Targets to Raise Rs3.65tr: Auction Calendar Mar-May

In the next quarter of FY24, the government plans to borrow Rs3.65 trillion from the market through various instruments. These include Market Treasury Bills (MTBs), Fixed Rate Pakistan Investment Bonds (PIBs), and Floating Rate PIBs.

The government will issue MTBs worth Rs1.81tr in seven auctions from March to May 2024. This is more than the maturing amount of Rs1.62tr. The first auction will take place on March 06 with a target of Rs225bn, followed by another auction on March 20 with a target of Rs340bn. In April, there will be three auctions with targets of Rs225bn, Rs270bn, and Rs150bn respectively. The last two auctions will be held in May with targets of Rs450bn and Rs150bn each.

The government will also sell PIBs worth Rs1.84tr in the same period. This includes Fixed Rate PIBs worth Rs570bn, Floating Rate PIBs (Semi-Annual) worth Rs1tr, and Floating Rate PIBs (Quarterly) worth Rs270bn. The PIBs offer higher returns than MTBs but have longer tenors and carry more risk.

The government's borrowing strategy reflects its need to finance the fiscal deficit and manage the debt profile. The market participants will assess the demand and supply conditions, as well as the interest rate outlook, before bidding for the government securities.