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KARACHI: The federal government raised Rs768 billion through the auction of Treasury bills on Wednesday, reflecting no change in the borrowing pattern from the previous fiscal year.
The banks came out with huge liquidity, over Rs2 trillion, to invest in government papers, the easiest way to earn risk-free profits.
The State Bank of Pakistan (SBP) reported on Wednesday that while the banks were eager to park the maximum of their liquidity, a provincial government also invested Rs300bn in public securities. The government has already opened doors for the general public to invest in government papers by opening an account for InvestPak.
The government believes that general public investment would reduce the bulk of banks’ investment that would otherwise go to the private sector, thereby boosting economic activity.
