ISLAMABAD - The government will borrow Rs 85 billion from open market through National Saving Schemes and bonds to meet its expenditure, Finance Ministry informed a Senate body. The Finance Ministry's top official on Friday told the Senate Standing Committee on Finance and Revenue, headed by MQM Senator Ahmad Ali, that the government would launch three short-term national saving schemes during next week, which would fetch Rs 20-25 billion. The government will also issue commercial papers and auction Pakistan Investment Bonds in first week of September for borrowing about Rs 60 billion from the market, said the official. Pakistan and Asian Development Bank have also agreed on US $ 1.2 billion loan on Thursday and the first tranche of the money would come in the third week of the next month, the official revealed to the Standing Committee. The commercial papers will be offered to the government's own departments at treasury bills interest rate, which is above 12 per cent, to get back the public money, which is deposited into private banks at less than two per cent interest rates. Various ministries and departments have deposited more than Rs 400 billion in private banks in gross violation of the government rules. The Senators were quite perturbed over the matter and they wanted the Finance Ministry to work on the issue.   "We do not want to crowd out banks by taking back all public money", said the top notch of the Finance Ministry adding the government would offer short-term commercial papers to the departments, which they could also mortgage.   The Senate body also discussed the issue of Karachi Stock Market that shed more than 40 per cent of its value during the past few months. Chairman Security and Exchange Commission of Pakistan, Razi-ur-Rahman, termed it a result of liquidity crunch and a regional phenomenon, happening in other countries as well. Senator Haroon Akthar Khan of PML-Q said that if it was a regional trend then why Sri Lanka and Bangladesh stock markets were performing well. "You (SECP) took stopgap measures without correcting market fundamentals", he added. He said during the last four months the KSE went down by 51 per cent in dollars term and nothing concrete was done to stop it. Senator Haroon said stock market was a reflection of overall economic health. "Why should investors invest in Pakistan when the government was doing everything to increase cost of doing business?" he added. He said the government did not know where the fault lied. "Much has not been done, what should have been done". The Chairman of the Standing Committee, Senator Ahmad Ali said he had not seen such a weak economic team during his whole life, adding, which did not know what to do in a situation of severe financial crisis. Senator Professor Kurshid Ahmad of MMA said confusion and absence of measures on economic front were more dangerous than anything else. He said the notion that stock markets usually reflected health of the economy was not true in case of Pakistan, which always performed the other way round.      The SECP chairman said that after April 18 the investors were taking out US $ 400-450 million per month, which caused an erosion of about US $ 1.5 billion from the KSE. He said that total foreign investment in KSE had come down to US $ 3 to 3.5 billion from US $ 5 billion.