Karachi: State Bank of Pakistan (SBP) on Wednesday announced that government would be borrowing Rs3.75t during the period of August-October.
This money is expected to be raised through Rs300b of Pakistan Investment Bonds (PIBs) and Rs 3.45t via market treasury bills.
Last year, the government altered its policy and started to obtain loans from the central bank. The government borrowed less from commercial banks in last financial year 2016-17 in comparison to previously which lent the former the flexibility in offering credit facilities to the private sector.
As a result of a change in government policy of borrowing, private sector borrowing reached Rs748b from commercial banks.
On Wednesday, the government had obtained Rs722b via market treasury bills. The amount raised for three months amounted to Rs575b, Rs17b for 12 months and Rs133b for six-month papers.
In July, SBP had reported that banks registered an increase in deposits during FY 2016-17. The government’s borrowing from the central bank amounted to Rs1.23t, while it obtained loans worth Rs352b from commercial banks in the final quarter of FY 2016-17.