ISLAMABAD: The Ministry of Finance has denied the news that Pakistan is seeking to raise another $1.5 billion via bonds during remainder of the financial year 2017-18.
Official sources approached by Pakistan Today said the government had no plans of raising more funds through bonds issuance.
Apropos to a news item which appeared in Gulf Today claiming Pakistan was planning to raise another international bond of $1.5 billion till the end of FY 2017-18 and avoid seeking another IMF bailout.
While speaking to Gulf Today, a senior official of the Finance Division said ‘“We will be considering launching another bond if need arises in the last quarter of the ongoing financial year. We have finalised our plan for continuously pouring dollar inflows in order to meet yawning financing gap on external front.”
This development comes on the heels of Pakistan’s successful bond issue of $2.5 billion via Eurobond and Sukuk in end-November, which helped shore up the country’s diminishing foreign exchange reserves and meet its financing gap on external front.
To rein in current account deficit, the government imposed regulatory duties in October on various items to discourage their imports.
Furthermore, the official said to Gulf Today “government has prepared alternate plans to fill financing gap on external front, so dollar inflows from all possible avenues will be explored in order to avoid deep crisis during the upcoming few months”.
“We will have to notify 45 days prior to launching of bond and we are considering going ahead for new international paper after March 2018.”
He added “It was not yet decided whether it would be sukuk or Eurobond as the decision would be made after identifying market appetite just ahead of the potential issuance.”
In early-December, the State Bank of Pakistan allowed the rupee to depreciate against the dollar, which would provide competitiveness to the export sector and boost them in the longer run.
