LAHORE
Through the Fiscal Year 2017-18, the Punjab government is expected to raise Rs 25b through government securities with the aid of the State Bank of Pakistan. The current figure of provincial debt of Punjab stands a touch above 3pc.
These government securities have been grouped into two namely Punjab Treasury Bills (PTBs) and Punjab Saving and Investment Bonds (PSIBs). PSIBs will be interest bearing fixed-rate instruments with maturities of more than a year’s period and PTBs will be discounted instruments with a maximum tenure of a year or less. Both these securities will be tradable in secondary markets as per budgetary documents.
Both these securities will be issuable for a range of tenors which will assist the Punjab government in presenting its debt maturity profile in a manner that portrays their creditworthiness and influences positively on its repayment abilities. In order to fund its development expenditures, the Punjab government plans to raise more debt in a sensible manner which would pave the way for the growth rate of its economy.
The issuances of these securities will help the provincial government in expanding its Annual Development Plan (ADP), gaining access to prospective investors, provident funds, pension funds, domestic banks, corporate treasuries and mutual funds.
