The government will be relying on banking system to meet its financial needs in the next three months, as State Bank of Pakistan (SBP) is all set to issue treasury bills and bonds worth more than Rs1 trillion in the third quarter of current financial year.
According to a notification of the central bank, government will be offering during a period from January to March 2011 treasury bills worth Rs980 billion, Pakistan Investment Bills of Rs35 billion and Rs45 billion Sukook Bonds.
Economic experts are of the view it seems that government intends to reduce its dependence on loan from SBP. However, the government should bear in its mind that the flow of foreign aid will be less than its expectation and it will have to rely on domestic loans for running government affairs.
It is pertinent to mention here that the government during first six months of the current fiscal obtained over Rs300 billion loans from the central bank.
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