Govt to borrow record Rs4.8tr via treasury bills in first quarter

Amid a revenue setback in December and higher expenditure, mostly for debt servicing, the government plans to borrow a record Rs4.8 trillion in the first three months of 2023 through market treasury bills (MTBs). According to the auction target calendar issued by the State Bank of Pakistan (SBP) on New Year’s Eve on Saturday, it will hold a total of seven auctions beginning Jan 3 (tomorrow) — a special auction to generate Rs300 billion even though there is no debt maturing during the week. The Federal Board of Revenue (FBR) on Saturday reported about Rs225bn revenue shortfall against the monthly target for December. The funds would be raised through MTBs of various durations of three, six and 12 months. The government usually raises funds from the market (commercial banks) through sovereign-backed debt instruments periodically to make up for the shortfalls in its tax collection. The government public debt worth Rs4.45tr is maturing for repayment in the first quarter of 2023.