Islamic Bonds pricing $500 million will soon be launched by Pakistan. This is in regards with the bailout package of I.M.F of three years which is said to close soon.
The idea behind the finance raising by the government is all about meeting the I.M.F payment which shall be due in some time. The government’s main focus is on Sukuk bonds, which as denoted by an official as sharia complained means it is offered with zero interest.
I.M.F Bailout Package’s End
The three-year bailout package of I.M.F priced at $6.6 billion. I.M.F declared last month that they will be giving details of the last installment of the package costing $102 million.
With respect to this, Masood Khan – Finance Secretary said:
“We have begun the roadshow in Dubai today and will go to London, Boston, and New York in the same leg”
He stressed on the fact Pakistan should enter the global capital market. The reason behind his saying this is maintaining of foreign exchange reserves, which to date is $22.69 billion. Mr. Khan also mentioned that the reason for Sukuk bonds is to the meet with forex’s future demand.
Government Is Soon Launching More Bonds
There are more to bonds. 10 year Eurobonds pricing $1 billion are also about to finish. According to Shajar Capital’s Rehan Ateeq, “After the IMF package is over and amid falling exports, Pakistan needs to raise the funds from different sources. We expect with the maturity of IMF loan as well as the Eurobond, the government would come up with more such bonds soon.”
As per today’s date, an overall $4.05 billion costing Eurobonds and Sukuks have been issued. According to last year’s fiscal year, the annual growth of the economy was 4.7% which is expected to increase by 5.5% this year. This is all predictable to happen alongside increasing taxes and rates of inflation. Whatever the case, this will be bring a hard time to the citizens of Pakistan.