To meet rising funding requirements, the government is set to borrow an additional Tk 5,000 crore through another special auction this month, bringing the total borrowing via special auctions in April to Tk 10,000 crore.

Bangladesh Bank will hold the special auction for 91-day Treasury bills on April 8. A senior official of the central bank confirmed the move, citing a surge in the government's demand for funds amid a shortfall in revenue collection compared to the set targets.

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The official noted that bank borrowing has become the primary source for the government to finance various social safety net programs, including the "Family Card" initiative, and other development projects.

Central bank officials believe the timing is ideal as the banking sector currently holds significant excess liquidity. At the end of last month, banks parked approximately Tk 11,500 crore through the Standing Deposit Facility (Reverse Repo).

Furthermore, the banking system has seen an influx of Taka as Bangladesh Bank has been consistently purchasing Dollars from commercial banks since the beginning of the year.

While regular Treasury bill auctions are typically held every Sunday, the decision to hold special auctions outside the scheduled calendar indicates an urgent need for liquidity in the national exchequer.

According to Bangladesh Bank’s projections for the April–June quarter, the government plans to raise Tk 1.10 lakh crore through short-term Treasury bills. This includes Tk 44,000 crore via 91-day bills, Tk 36,000 crore via 182-day bills, and Tk 30,000 crore via 364-day bills. Additionally, the government aims to collect Tk 39,000 crore through medium- and long-term Treasury bonds.

Officials from the Debt Management Department clarified that not all of this amount constitutes net borrowing, as a portion will be used to repay or renew maturing bills and bonds.

Market insiders observed that with private sector credit growth dropping to 6.03 percent, banks are increasingly viewing government securities as a "100 percent safe" investment destination for their idle cash.