For that, he had continually raised money from the EPF and from state banks at low interest.

During the whole of 2014, only six auction issues had taken place to raise Rs. 24,000 million, whereas so far in 2015 from January, Rs. 359,000 million had been collected in 22 auctions.

Personal issues worth Rs. 552,250 million had taken place in 2014, for which 75 per cent of the money had come from the EPF and state banks.

In 2015, personal issues accounted for Rs. 107,591 million only.

Personal & auction issues

In auction issues, there is transparency for buyers to compare market interest rates and submit their bids in accordance with tender procedures, thereby improving their confidence.

The decisions are taken by a tender board comprising economic experts of the CB, excluding the governor.

In personal issues, only two parties take part and both sides have the opportunity to decide interest rates etc. according to their wish, at which the CB governor gets involved.

This is not transparent and allows room for corruption and irregularities.

Expert opinion is that the auction method should be used for between 80 to 85 pc of bonds issues, and personal issues can be considered immediately after an auction issue only if a sudden need for money arises.