Pakistan is preparing to return to the international bond market after four years, with plans to issue dollar, euro, and Islamic Sukuk bonds.
Pakistan in global bond market
Finance Minister of Pakistan, Muhammad Aurangzeb, has said in an interview with Bloomberg that the country is preparing to return to the global market after four years.
Adding that all the major economic indicators, including inflation, interest rates, fiscal deficit, and current account, are moving in a better direction.
He further said that the government will issue a proposal in the coming weeks to select financial advisors.
In his statement, he also said the government is considering issuing bonds in dollars, euros, or Islamic Sukuk.
Pakistan to launch country’s first ever panda bond
He further added that preparations are also underway to introduce the country’s first panda bond.
The finance minister said that at the World Economic Forum in Davos, the Pakistani delegation is being led by Prime Minister Shehbaz Sharif.
He described this as a message to global investors that Pakistan’s economy has improved.
Work is also underway to privatise airports in Islamabad, Lahore, and Karachi, the finance minister added.
He further stated that Pakistan has achieved significant successes in economic stability.
Inflation, interest rates, and current account and other key economic indicators are also moving in the right direction.
IMF programs
Muhammad Aurangzeb further said that under the IMF programs, strict financial reforms were implemented. These led global rating agencies to improve Pakistan’s credit rating.
The finance minister added that foreign exchange reserves are expected to cover three months of imports by June.
He said there is no immediate pressure on the rupee as the balance of payments has improved.
He also said that remittances have increased and exports of services are rising. The rupee has remained stable for about the past one and a half years.
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