ISLAMABAD: The government plans to raise $1 billion from the international market next month or a month after through issuance of Eurobonds, according to the Finance Ministry.
Special Secretary Ministry of Finance Kamran Ali Afzal told a select group of media that the government plans to issue $1 billion Eurobonds either in December 2020 or in January 2021 but the actual size would depend on the response received from the international market. The government also wants to issue Sukuk and the timeline has not been yet decided, he said, and maintained that the international situation is also favourable for issuance of bonds and there is an expectation that the bonds would be issued at relatively less interest rate. He said bids have been received from individual banks.
The Ministry of Finance has also invited proposals from financial institutions to act as financial advisors for the registration, structuring, launch, and execution of medium-term notes (MTN) for one year period. However, the official did not disclose the size of the proposed issuance, and all he said that “work is in progress at great pace”.
About pay and pension, the official said that there is also working going on to meet the target to implement from the budget for the next fiscal year mostly probably from June 2021, and added it would be applicable on the new recruitment, and not on the existing employees.
Copyright Business Recorder, 2020
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