The government on Thursday raised Rs. 68 billion through the auction of five-year fixed rate government of Pakistan Ijara Sukuk against the target of Rs. 25 billion.

The cut-off rental rate of 11 percent, however, was much higher than the cut-off rate in the auction held on September 30, which stood at 9.7 percent.

The government has also raised Rs. 47 billion through the auction of five-year variable rate Ijara Sukuk. The issuance of the Sukuk will help the government in diversifying its outstanding debt.

The government plans to raise Rs. 6.90 trillion to finance the budget deficit caused by low revenues through the auctions of Market Treasury Bills (MTB), Pakistan Investment Bonds (PIB) and Sukuk from December 2021 to February 2022.

During the first quarter of the current fiscal year, the budget deficit jumped to Rs. 745 billion compared to Rs. 529 billion during the same period of the previous year. The budget deficit in the first quarter of the current fiscal year stands at 1.4 percent of the gross domestic product compared to 1.2 percent during the same period of the previous year.

Source: Pro Pakistani