KARACHI – The government, sustaining its reliance on the banking system, raised over Rs 194.555 billion on Wednesday from the commercial banks through auction of long and short-term government securities. The State Bank of Pakistan (SBP) tendered the three, six and twelve month Government of Pakistan Market Treasury Bills (MTBs) and received bids of Rs 231.305 billion from primary dealers.
Investors, fearing uncertainties emanating from global recession, high interest rate and economic instability preferred to opt for short-term papers. Offers for the three month MTBs at over Rs 200.555 billion were highest. Offers, made during January 25 to 26, against the six and twelve month papers aggregated to Rs 18.25 billion and Rs 12.5 billion respectively.
The government raised over Rs 173.055 billion, Rs 13 billion and Rs 8.5 billion by selling three, six and 12 month sovereign guarantees at a weighted average yield of 13.5672, 13.6195 and 13.8699 percent respectively. The cut-off yield for the three maturity periods were 13.6699, 13.7128 and 13.8814 percent respectively.
