Karachi June 14 2023: On June 14, 2023, State Bank of Pakistan raised PKR 2,234 billion, almost double the targeted amount, through the auction of market treasury bills as discussion are going on with IMF for completion of 9th review.
After technical meeting with the IMF, the things would get clear about future of the programme says Minister of State for Finance and Revenue Ayesha Ghous Pasha on Wednesday.
Pakistan is at an increasing risk of failing to restart its $6.7 billion bailout program with the International Monetary Fund, putting the South Asian country closer to a sovereign default, Moody’s Investors Service said.
“There are increasing risks that Pakistan may be unable to complete the IMF program that expires at the end of June,” said Grace Lim, a sovereign analyst with the ratings company in Singapore. “Without an IMF program, Pakistan could default, given its very weak reserves.”
Pakistan is making a final effort to revive its IMF program, with a financing gap of $2 billion and exchange-rate policy among the biggest hurdles. While the government has pledged to meet billions of debt obligations, investors have remained skeptical with the nation’s dollar bonds trading in distressed.
The government received total bids worth PKR 2,586 billion and the highest bids of PKR 2,012 billion for 3 Month T-bills followed by PKR 350 billion for 12 Months and PKR 223 billion for 6 Months.
Cut-off yields increased by 5 basis points for 6 Month T-Bills, while for 3 Months and 12 Months the cut-off remained unchanged.
The cut-off yield for 3 Months, 6 Months, and 12 Months paper settled at 21.9999 percent, 21.9890 percent, and 21.9997 percent, respectively.
The government raised PKR 2,234 billion in the latest auction against a target of PKR 1,200 billion.
