Karachi: The State Bank of Pakistan (SBP) on Wednesday (June 29) raised PKR 1.742 trillion by auctioning Market Treasury Bills (MTB) to commercial banks, news sources reported. The collected amount surpassed the targeted amount of PKR 800 billion.
According to the SBP, private banks acquired the MTB due to higher profit rates and fewer risks associated with government bills. The government received offers totalling PKR 2,370 billion, indicating that banks were ready to park their liquidity in risk-free government papers. It was also said that due to the increased default risk associated with loans offered at a higher policy rate of 13.75%, banks have opted for short-term and high-profit government treasury bills to reduce risk. The central bank auctioned MTB for three different tenures with different profit rates.
The MTB profit rate for three months was 15.23%, for six months it was 15%, and for a year it was 14.95%. It is worth noting that governments issue securities in the form of T-bills to raise funds for development and budgetary purposes.
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.
