Pakistan, April 17 -- The federal government has successfully raised Rs1.22 trillion by auctioning Treasury bills (T-bills) and Pakistan Investment Bonds (PIBs). The State Bank of Pakistan reported strong demand, receiving bids worth Rs1.73 trillion for T-bills and Rs1.59 trillion for PIBs. This reflects growing investor interest amid uncertain economic conditions.

In the latest T-bill auction, the government accepted Rs965 billion, well above the target of Rs850 billion. The maturity amount stood at Rs821 billion. However, the PIB auction raised only Rs261 billion against a target of Rs400 billion, despite high demand.

Analysts are concerned that this increasing investment in government securities may slow down credit flow to the priva...