The government of Pakistan will borrow Rs. 5700 billion over the next 3 months to finance its budget deficit.
The government will borrow Rs. 5,550 billion in Market Treasury Bills (MTB) and Rs. 150 billion in Pakistan Investment Bonds (PIB).
Over the next 3 months, the government will conduct 7 auctions of MTBs and 3 auctions of PIBs. The MTBs will have 3, 6 and 12 months of maturity periods.
From August to October, the total maturity of MTBs is Rs. 5,590,765 million and new auction will be done for Rs. 5,550,000 million. This shows a reduction in total requirement of Rs. 40,765 million.
The government will borrow in 3, 5, 10 and 20-year maturity PIBs. Auction Target Calendar shows that during the next 3 months, PIBs total maturity will be Rs. 103,412 million. During the same period, Rs. 150,000 million will borrow in terms of PIB.
Pakistan Investment Bonds Coupon Rates
PIBs which are maturing are fixed coupon rate. Coupon rates are as follows:
- 3 years: 7.25%
- 5 years: 8.00%
- 10 years: 8.75%
- 20 years: 10.75%
Fresh PIB auction will be held on floating rate. The coupon rate for new action will be decided in the auction. Benchmark rate would be latest 6-month MTB weighted average yield.
In each PIB auction, the government is willing to borrow Rs 50,000 million.
Auction Dates for Pakistan Investment Bonds
PIB auctions will be held on August 8, September 5 and October 17 of the financial year 2018-19.