Karachi: The government accepted bids worth PKR 274.4
billion in its latest Treasury Bills (T-Bill) auction, according to a recent press
release by the State Bank of Pakistan. During the proceedings, it received bids
worth over PKR 1.1 trillion, but only accepted a fraction
Reportedly, the accepted bids amounted to 25% less than the
auction target of PKR 400 billion – tethered to a maturity amount of PKR 345.9
billion.
The high amount of bids received during the auction were
indicative of the banking sector’s eagerness to invest in government papers; a willingness
not reflected in their disbursal of funds to the private sector.
Through this and other such auctions, the government has
reportedly been focussed on inviting foreign investors to increase its T-Bill
inflows, as the high interest rates of 13.25% have held off domestic investors.
These interest rates are expected to change in the medium to long term, as the
current rates have prevented the banking sector from lending to the private
sector.
