KARACHI: Investors offered over Rs3.2 trillion to buy treasury bills against the target of Rs650 billion, reflecting the markets’ fear that the interest rate may come down further to match the sharp deceleration in inflation.

The investors, mainly banks, were willing to invest the highest amount of over Rs1.086tr for the longest period of 12 months, but the government raised Rs374.6bn for this period at 11.19pc.

The government exceeded the target and raised a total of Rs772.3bn through the auction of 1, 3, 6, and 12-month papers, including Rs107.8bn of non-competitive bids.

The auction reflected high liquidity in the market, a sign of limited investment options in the economy.

The government has maintained its strategy of borrowing less in the short term, as it has been raising funds through long-term Pakistan Investment Bonds.

The maturity amount for the current T-bill auction was Rs818bn.

Published in Dawn, May 28th, 2025