Reported by Dawn News
KARACHI: On Tuesday, the Pakistani administration lifted Rs131.4 billion by auctioning Pakistan Investment Bonds (PIBs), further expanding the domestic deficit volume, quoted by Dawn News.
Findings from the State Bank establish that the government expanded the highest amount, Rs115bn, via three-year PIBs against recommendations of Rs154.3bn, with a 16.6 per cent rate of return.
The minimum amount, Rs500 million, was extended for five-year PIBs against bids of Rs45bn. The pace of recovery on this tenor was 15.44pc.
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The administration raised Rs13.4bn for the standard 10-year tenor with a 15.25pc cut-off yield, and the proposals for the 10-year bonds raised to Rs47.4bn.
The government expanded Rs128.87bn through the bidding, whereas the entire amount submitted was Rs131.4bn, involving the non-bid amount.
The administration has been compiling long-duration PIBs, which have anchored a considerable portion of Rs26.53 trillion as of April 2024. This deficit was earned during the last term of Nawaz Sharif, with Mr Dar as the finance minister, who was anxious about uplifting the long-term deficit to evade the responsibility of massive servicing each year.
As a result, the administration now consumes almost its fundamental tax revenue on interest rate revenues.
