Govt borrows Rs599b via T-bills auction

On Wednesday, the government sold treasury bills to commercial banks in order to raise Rs 599 billion in debt. The commercial banks lent the money at a historically high yield of about 22%.

According to data from the central bank, banks wanted a greater rate of return on lending more money, which resulted in the borrowed amount being roughly 40% lower than the aim of Rs1 trillion.

In contrast to the Rs1 trillion auction aim, banks provided Rs1.04 trillion in financing. According to the data breakdown, the government borrowed Rs510.86 billion by selling three-month T-bills at a yield of 21.99%.

It borrowed Rs74.92 billion through 12-month T-bills at 21.99% and raised debt of Rs23.52 billion through the auction of six-month notes at 21.97%.

As the gap between supply and demand for the US dollar closed, the value of the Pakistani rupee remained constant at Rs283.89 on the interbank market.

According to market observers, demand for US dollars for imports was flat while supply came from exports and worker remittances at the same level.