Govt raises Rs3.4tr via sukuk, PIBs

The government borrowed Rs2 trillion through auctions of sukuk (Islamic bonds) at the stock exchange and raised another Rs1.4tr by selling Pakistan Investment Bonds (PIBs) during 2024. The government has been trying to restructure its debt profile by opting for long-term borrowing over short-term domestic bonds. “In 2024, the government raised Rs2tr from sukuk auctions using the PSX auction system in 15 auctions,” according to a Topline research report. According to bankers, the government succeeded in borrowing for the long term since banks are now eager to park their liquidity in government accounts as they promise the highest yields.