KARACHI: Investment in government papers, mainly dominated by the banking sector, set new record as it crossed Rs10 trillion-mark.
The State Bank of Pakistan (SBP), in its latest report released on Monday showed that banks and non-banks including corporate sector investments in the government papers reached Rs10.3 trillion by the end of August. The major chunk of these investments came in the short-term papers.
Banks’ investment reached to extraordinary levels at Rs7.94tr reflecting their investment strategy to book maximum profits while investing in risk-free instruments and made up for 77.1 per cent of the total investments whereas the rest came from non-banks including insurance companies, funds and corporate sector amounting at Rs2.361tr.
In addition, the World Bank in its latest report commented that the strong short-term deposit mobilisation, due to recent increases in policy rates, has been utilised for investments in government securities.