Domestic banking sector: Govt sets Rs5.75trn borrowing target for Q1
This target represents a 40 percent increase compared to the first quarter of FY25, when the borrowing goal was set at Rs 3.970 trillion.
The State Bank of Pakistan (SBP) on Monday issued calendars for the auction of Pakistan Investment Bonds (PIBs) and Government of Pakistan Market Treasury Bills (MTBs) for July-September period of this fiscal year.
Securities' auction procedures: SBP unveils changes
The government is intended to meet the major financing requirements through sale of short-term government security papers-MTBs. The federal government has planned to raise some Rs 2.4 trillion through sale of PIBs during the first quarter of this fiscal year. Some Rs 1 trillion will be borrowed through sale of PIB (Fixed Rate), Rs 1.4 trillion through PIB (Floating Rate) Semi-Annual auction.
Auctions for PIB (Fixed Rate) will be held on July 16 and August 1, 2025 with a targeted borrowing of Rs 300 billion for each auction, while another Rs 400 billion will be raised in September 2025. In addition, some six auctions of PIB (Floating Rate) will be held during the first quarter of FY26 to achieve the borrowing target of Rs 1.4 trillion.
The federal government also intends to raise Rs 3.175 trillion through sale of short-term government security papers during July-Sep of FY26. Overall, some 6 auctions of T-Bills to be conducted to meet the financing target. First auction of MTBs will be held on July 9, 2025 with a tentative target of Rs 1.35 trillion.
Economists said the less than revenue collection has compelled the government to borrow more from the domestic resources to finance the fiscal deficit. They said that massive borrowing resulted in over Rs 8 trillion interest payments in this fiscal year.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
20 hours ago
- Business Recorder
CM for comprehensive plan to support wheat farmers
LAHORE: Chief Minister Punjab Maryam Nawaz Sharif directed the authorities concerned to start a comprehensive plan to support wheat farmers in order to increase production of wheat. She also directed them to take necessary measures to reduce cost of agricultural inputs before wheat sowing in Punjab. She further directed them to ensure abundant availability of fertilizer before wheat sowing. She said, 'Targeted subsidy should be given to small wheat farmers in relief.' The Chief Minister agreed to a proposal to provide interest-free loans of Rs 100 billion to farmers before wheat sowing. She was briefed in detail by the relevant authorities, 'Timely sowing of wheat is essential for better production in Punjab.' She was also apprised, 'A total of Rs 63 billion subsidy was given to farmers in Punjab during two months, and farmers obtained interest-free loans of Rs 50 billion through Kisan Card.' The CM noted, 'A subsidy of Rs 13 billion was given under the Chief Minister's Wheat Support Program, and the use of fertilizers, especially DAP, has increased in Punjab due to Kisan Card Project.' She vowed, 'Wheat farmers will not be left alone, the government will provide full support. Punjab farmers receive the best facilities and government support.' Copyright Business Recorder, 2025
Business Recorder
20 hours ago
- Business Recorder
NAB recovers Rs 456bn in 2nd quarter of 2025
LAHORE: The National Accountability Bureau (NAB) continues to demonstrate its unwavering commitment to safeguarding state assets and interests of the general public and recovering funds belonging to the national exchequer. The Bureau's relentless efforts are evident through recovery of Rs 456.3 billion during the second quarter of 2025, marking a substantial increase of Rs. 365.29 billion compared to Rs. 91.01 billion recovered in the first quarter of the same year. Out of said recoveries of Rs. 547.31 billion for the first two quarters of 2025, movable and immovable properties worth Rs. 532.33 billion have been disbursed/ handed over to different ministries and departments of federal and provincial governments, as well as, financial Institutions; whereas, 12,611 affectees of different cheating public at large cases have also been compensated. In the past two years, NAB has recovered a staggering total of Rs. 5,854.73 billion (Rs. 5.854 trillion), which is 700 percent more that of Rs. 839.08 billion recovered since the Bureau's inception. This exceptional achievement underscores the hard work and commitment of NAB officers across various regions, who have successfully retrieved billions of rupees from corrupt and unscrupulous elements. Key recoveries and achievements in Quarter 02 of 2025: NAB Rawalpindi recovered 51 kanals of valuable state land worth Rs. 29 billion located in Sector E-11, Islamabad, which has been handed over to the Capital Development Authority (CDA). In a major cheating public at large case (B4U), NAB secured Rs. 3 billion which will be disbursed to 17,214 affectees while, an additional tranche of Rs. 4 billion is expected in the current quarter. In another case of Banker's City, 640 kanals & 11 marlas land of significant value has been transferred to NAB, with proceeds to be distributed among the affected individuals. NAB Sukkur successfully recovered a land worth Rs. 25.079 billion belonging to the National Highway Authority. The Bureau has also recovered 127 kanals & 15 marlas of land valued at Rs. 895.160 million, belonging to the Education and Literacy Department, Government of Sindh. From an impressive recovery portfolio, Rs. 384.270 billion worth of forest land was recovered in the quarter ending June 2025, contributing to a total forest land recovery value of Rs. 1,487.77 billion. NAB Lahore disbursed a tranche of Rs. 3.2 billion, recovered in the Eden case, to 11,880 affectees of the society. In Pak Arab case, eight properties valued at Rs. 3.9 billion were surrendered by the accused and are in the process of transfer to NAB. Proceeds from these assets will be disbursed to 2,500 affectees of the case. A plea bargain amounting to Rs. 2.181 billion is under way with owners of Elite Town Housing Society, with recovered funds intended for disbursement among 1,789 affectees. Currently, NAB is actively coordinating with the revenue departments of all provinces to recover state assets and properties unlawfully held by corrupt elements. Preliminary estimates indicate that state land worth approximately Rs. 5 trillion is under illegal possession and will be reclaimed. NAB's sustained focus on accountability and justice reflects its promise to the nation to protect public resources and deliver tangible benefits to affected citizens. The Bureau calls upon all stakeholders to support this mission to restore transparency and uphold the rule of law. Copyright Business Recorder, 2025
Business Recorder
20 hours ago
- Business Recorder
Ecnec approves 100MW solar power project for Gilgit Baltistan
GILGIT: Executive Committee of the National Economic Council has approved a one hundred megawatt solar photovoltaic power project for Gilgit Baltistan. Following Ecnec's approval, formal work on the project will commence. During his recent visit to Gilgit, the Prime Minister had announced that Ecnec would soon approve the 100-megawatt power plants for Gilgit-Baltistan. Central Development Working Party has already approved the project. This project will benefit the districts of Astore, Darel, Tangir, Diamer, Ghanche, Ghizer, Gilgit, Hunza, Ishkoman, Nagar, Roundu, Skardu and Shigar. Govt plans to set up 100MW solar project in GB In the first phase, Skardu district will be provided with 18.958 megawatts of electricity. In the second phase, the districts of Hunza, Gilgit and Diamer will be supplied with 6.005 megawatts, 28.013 megawatts and 13.126 megawatts of electricity respectively. In the third phase, the remaining districts will receive 16.096 megawatts of electricity. The project is set to be completed within three years at a total cost of Rs 24,957 million.
