KARACHI: The government increased the cut-off yields to raise Rs852 billion through auctions of treasury bills on Wednesday against the target of Rs650bn.

The State Bank reported that the three-month cut-off yield was increased by 94 basis points to 17.937 per cent. All the bids for six-month and 12-month tenors were rejected.

The central bank received a total of Rs1,593bn bids suggesting that the banks were willing to park their maximum liquidity in government papers. This was the first auction after SBP raised its policy rate by 100bps 25-year high of 17pc.

The government has been borrowing costly money and will have to pay back huge sums in interest payments which will further reduce development spending.

Published in Dawn, January 26th, 2023

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Qureshi returns
Updated 08 Jun, 2023

Qureshi returns

Powerbrokers fail to grasp that political legitimacy is drawn from public support and can only be contested through the democratic process.
Lawyer’s killing
08 Jun, 2023

Lawyer’s killing

THE shocking murder of Supreme Court lawyer Abdul Razzaq Shar on a Quetta thoroughfare on Tuesday raises a number of...
Infinite jest
08 Jun, 2023

Infinite jest

IF this government’s political record were to be described as dark comedy, its economic management would be a...
Rinse and repeat
Updated 07 Jun, 2023

Rinse and repeat

Pakistan's Groundhog Day politics continue without missing a beat.
Reimagining airports
07 Jun, 2023

Reimagining airports

AIRPORTS across the world have transformed themselves. No longer are they mere hubs for air travel; they now offer...
Transgender healthcare
07 Jun, 2023

Transgender healthcare

OUR social and political structures have sent the transgender population to Coventry. Anathema and misconception ...