Govt to borrow over Rs10 trn to meet financial obligations.

The federal government has unveiled its borrowing strategy for the second quarter (October to December) of fiscal year 2024, aiming to secure more than Rs10 trillion from the domestic market to meet its financial obligations and bridge the fiscal gap.

As per reports, the State Bank of Pakistan (SBP) issued an auction calendar on behalf of the federal government. The government's borrowing plan includes the auction of various types of security papers, encompassing Pakistan Investment Bonds Fixed Rate (PIBs Fixed Rate), Pakistan Investment Bonds (PIBs) Floating Rate, and Government of Pakistan Market Treasury Bills (MTBs).

The government's primary focus will be on short-term government papers, as it strives to raise a significant portion of the borrowed amount through the sale of Market Treasury Bills (MTBs). Approximately Rs7.905 trillion will be raised through MTBs during this period, which is lower by Rs2 trillion compared to the maturing amount for the same quarter.

To achieve its financing target, the government has scheduled seven auctions of Treasury Bills (T-Bills) during the...