On September 12, the State Bank of Pakistan lowered its policy rate by 200 basis points to 17.5%; before to the announcement, T-bill cut-off rates were already at this level.
Market analysts characterized the action as unexpected given that the government mostly uses bank funds to fund its daily operations. Every year, the majority of the revenue is used to pay off debt.
Three times the goal amount, or Rs1,425 billion, was offered by the investors overall.
There was a lot of interest in the 12-month T-bills; bids of Rs925 billion, or 65% of the total amount placed, indicated this. Bids for the three-month T-bills were Rs222 billion, and Rs279 billion, or 20% of all bids, was received for the six-month notes.
