Govt raises Rs427bn through PIBs’ auction

The government raised Rs427 billion by auctioning Pakistan Investment Bonds (PIBs) on Wednes­day, exceeding the Rs350bn target. The government raised Rs77bn more, reflecting the increasing need for government spending. The banks were also found to be over-liquid as they were willing to invest Rs887bn in the PIBs. Interestingly, the government raised the highest amount of Rs287.6bn for 10 years while the most bids amounting to Rs305bn were for 5-year bonds. Financial experts stated that the bids reflect the banks’ liquidity, while the government’s preference indicates its strategy to raise debts for a longer period. It was also reflected in the last several auctions of the treasury bills when the government raised less than the maturity amount.