State Bank of Pakistan (SBP) has issued a auction schedule for Pakistan Investment Bonds (PIBS) and Market Treasury Bill (MTBS), which aims to collect Rs 6.8 trillion in upcoming auctions. –
Domestic markets and monetary management department published a calendar, which detailing the short -term MTBS as well as fixed rate and floating rate PIB planning.
According to SBP data, the Central Bank plans to generate Rs 2,900 billion through MTB auction and Rs 3,925 billion through PIB-which from the fixed rate PIB 1, Rs 050 billion and floating rate is Rs 2,875 billion from PIBS. The auction will be held between February and April 2025, which will cover various maturity. Meanwhile, the maturity of the bond during this period is a total of Rs 3,092 billion.
Economists believe that the decision to raise Rs 6.8 trillion in just three months of the SBP reflects an important fiscal deficit, which emphasizes the need to meet the government’s reduction between income and expenditures. –
The increasing need for borrowing often results in interest rates, which makes it difficult for SBP to reduce the policy rate, which is currently the highest global globally. Back to commercial banks or SBPs itself can also increase the amount of money, which potentially increases inflation. The SBP has warned that inflation is declining, it can be reunited from June 2024.
Heavy government loans can also reduce the availability of funds for private sector loans, limiting business growth and reducing private investment, which can negatively affect the economic expansion.
The growing dependence on PIBS and MTBS increases Pakistan’s domestic debt burden. If receiving revenue is weak, high payments for loans can lead to long -term financial challenges.
