The government has planned to borrow Rs4.80 trillion from commercial banks over the next three months against issuing its sovereign bonds like Pakistan Investment Bonds (PIBs), T-bills to partly repay previous debt and partly to finance its projects, according to a report by The Express Tribune.
The report citing data released by the State bank of Pakistan (SBP) and information provide Arif Habib Limited stated that the Ministry of Finance is scheduled to repay Rs3.92 trillion against maturing T-bills of three to 12-month tenures and PIBs (eg three to 20-year tenure) during September to November 2021 whereas the rest of the raised amount at Rs872 billion “may be utilised to finance new and/or ongoing development projects (like roads and dams), finance defence requirements, and issue funds to different ministries.
The breakdown suggests the government would raise Rs450 billion through issuing three to 30-year PIBs at a fixed rate of return ranging from 7-11 per cent against maturity of mere Rs18 billion during Sept-Nov 2021.
It would raise another Rs450 billion through issuing two to five-year PIBs on floating rate ranging between 7.2293-7.6463% against zero maturity, as they remained relatively new in Pakistan.
It would raise Rs3.90 trillion against issuing three to 12-month T-bills against maturing of such bonds amounting to Rs3.91 trillion, according to the central bank.
