Government to Borrow Rs5.75 Trillion from Banks for April-June Deficit

Buckle up for a wild financial ride! The government is gearing up to snag Rs5.75 trillion from banks through treasury bills and bonds in the April-June quarter to patch up its gaping budget deficit and settle some nagging loans. That’s a chunk less than the Rs6.75 trillion they first had their eyes on for March-May, so they’ve dialed it back a bit.

The State Bank of Pakistan (SBP) dropped its auction calendar, spilling the beans: they’re set to haul in Rs3.65 trillion via Market Treasury Bills (T-bills), with payback timelines stretching from a quick one month to a leisurely 12 months.

On top of that, they’re gunning for Rs2.1 trillion by peddling Pakistan Investment Bonds (PIBs)—both fixed-rate and floating-rate flavors—with maturities ranging from a modest two years all the way up to a hefty 15 years.

Here’s the kicker: the T-bills maturing this quarter are clocking in at a steep Rs3.913 trillion, meaning they’ve got some serious cash to cough up soon. The government’s leaning hard on banks because tax revenues are a total letdown and financial inflows are drying up faster than a puddle in the sun.

The Federal Board of Revenue (FBR) only scraped together Rs1,120 billion in March, missing its Rs1,220 billion goal by a painful Rs100 billion. And for the July-March stretch of FY25, the FBR’s haul was a measly Rs8,464 billion—a whopping Rs703 billion short of the Rs9,167 billion they were banking on. Ouch!