Karachi: The State Bank of Pakistan (SBP) on Monday (September 27) shared data showing a 30% investment increase in government-backed bonds, news sources reported.
Private banks and corporations invested USD 4.877 trillion more in government securities during the nine months ending in June, a one-third rise over the same time last year. According to official data, high-yielding, risk-free domestic bonds continue to be the primary source of revenue for banks and several corporate giants, with banks investing PKR 21.084 trillion by June 30, up from PKR 16.207 trillion in September last year.
According to the central bank statistics, banks invested PKR 3.278 trillion in Pakistan Investment Bonds (PIBs) during the time, while government bills declined by PKR 15 billion. Similarly, by the end of June, overall investment in these papers had reached PKR 11.595 trillion, with banks investing PKR 8.952 trillion and others, including corporate investors, investing PKR 2.642 trillion. By the end of June, overall investment in market Treasury notes had reached PKR 7.209 trillion. Banks invested PKR 5.796 trillion in this short-term paper, while others invested PKR 1.412 trillion.
It is worth noting that the current policy rate is hovering around 15%, the highest in the last decade, with the government planning to adjust policy rates to counter inflation. However, the government has continued to keep the profit rate on bonds slightly higher than the market rate in order to attract more investment.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
