The federal government Wednesday rejected all the bids for Pakistan Investment Bonds (PIBs). Mainly, the State Bank of Pakistan (SBP) conducts one auction every month to raise funds for the government and this was the seventh auction in a row, in which all bids were rejected by the federal government. During this fiscal year, some Rs 52.4 billion were raised through the sale of first auction of PIBs held in July 2017. After that the federal government has not borrowed a single penny through PIBs auctions conducted in August, September, October, November, December 2017 and January 2018.
The State Bank Wednesday conducted the auction for PIBs for sale of 3-, 5-, 10-, and 20-year maturity to raise some Rs 50 billion for the federal government to meet its rising financial requirements.
Participation was very thin in the auction and overall, bids worth Rs 12.56 billion with total realized value of Rs 12.445 billion were received for the sale of 3-year and 5-year long-term government securities. Not a single bid was received for 10- and 20-year varieties.
Most of the bids were received for 3-year PIBs. The 3-year long-term government papers fetched bids amounting to Rs 11.9 billion (total realized value). Some Rs 542 million bids were submitted for 5-year bonds. The federal government rejected all the bids. The next auction for PIBs will be conducted on March 21, 2018 for Rs 50 billion.
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