The government is planning to raise Rs. 4.92 trillion through the sale oftreasury bills and bonds till the end of April 2021 in order to fill in thebudget gap.
The SBP will hold fortnightly auctions for 3, 6, and 12-month MarketTreasury Bills between February and April, with a total target of Rs. 4.3trillion for the six auctions.
The central bank revealed plans to sell fixed-rate Pakistan InvestmentBonds (PIBs) of 3, 5, 10, 15, 20, and 30-year terms, worth Rs. 350 billion.This will be coupled with floating rate PIBs of 3, 5, and 10 years, worthRs. 180 billion.——————————
Additionally, the SBP also shared plans of auctioning two-yearfloating-rate PIBs worth Rs. 90 billion in the period under review.
The government has issued an auction calendar for the government ofPakistan Ijara Sukuk. However, it has not set a target for the three fixedrental rate and variable rental rate Ijara Sukuk, reported a national daily.
The Ministry of Finance is working on new assets to issue this potentialSukuk. So, for now, the government has kept the Sukuk auctions open.
Read Top Stories
However, this domestic borrowing will depend upon tax collection by thegovernment. If the government manages to meet the revenue targets throughtax revenues, then the need for borrowing from banks will be reduced, andso would the issuance of this debt.——————————
Until January 2021 end, the Federal Board of Revenue (FBR) managed tosurpass the monthly target of Rs. 341 billion, by collecting Rs. 363billion. The total revenue collection for seven months (July 2020 toJanuary 2021) by the FBR has also been above the initial target by Rs. 17billion.
The FBR collected Rs. 2.568 trillion against the initial target of Rs.2.551 trillion.
