KARACHI: The government intends to borrow Rs6.825 trillion via Treasury bills and bonds from the domestic debt market between February and April to meet its budgetary needs.

For the months of February through April, the majority of the anticipated borrowing would be done through Pakistan Investment Bonds with maturities of two, three, five, 10 and 15 years.According to the auction calendar released by the central bank on Monday, the government would be able to borrow Rs3.925 trillion from the commercial banks through the sale of fixed- and floating-rate PIBs. The government would raise Rs2.9 trillion through the auctions of Market Treasury bills.

The government borrows money to meet its spending needs and pay for the servicing of domestic debt. T-bills of Rs3.09 trillion will mature between February and April of FY2025.The State Bank of Pakistan (SBP), in its monetary policy statement issued on Monday, said that the Federal Board of Revenue’s (FBR) revenue recorded a notable increase of around 26 per cent during H1FY25. However, the shortfall in tax collection from the target has widened. Accordingly, a steep acceleration in tax revenue growth would be required to achieve the annual target. Meanwhile, estimates from the financing side suggest an improvement in the fiscal balance during H1FY25, indicating relatively contained expenditures.

“The Monetary Policy Committee (MPC) viewed that the anticipated lower interest payments than the budgeted amount is likely to contain the overall fiscal deficit around its target. However, achieving the target for the primary balance would be challenging,” it said.