KARACHI, May 17: The State Bank will sell Rs30 billion worth of 15-year and 20-year Pakistan Investment Bonds on June 9, 2004.

Head of Treasury of SBP Zafar M. Shaikh informed primary dealers or the banks and other financial institutions that sell government securities about the auction of these bonds at a meeting held at SBP here on Monday.

Participants of the meeting said Mr Shaikh asked banks not to hold PIBs with them and try to market the same to the corporates. 15-year and 20-year bonds carry coupon rates of 9 per cent and 10 per cent respectively but currently they are trading in the secondary market at lower rates.

Mr Shaikh also held a separate meeting of more than half a dozen bankers and warned them to remain within the bounds of the rules of the games in the foreign exchange market.

He told them that the reason why the dollar has gained slightly in the last few days was that huge outward payments were being made both by the government as well as by the private sector. "There is no reason to panic," Mr Shaikh was quoted by one of the participants as saying.