ISLAMABAD: Pakistan’s upper house of the parliament on Wednesday passed a law to allow the creation of a sovereign wealth fund which will have the country’s solvent assets parked in it.
Finance Minister Ishaq Dar passed the bill that was already passed in the lower house of the parliament. The upper house’s speaker, Sadiq Sanjrani, announced the bill becoming law in a live telecast.
The South Asian nation is asset solvent, Dar told the house, saying that’s why he had discarded any talk in recent months of the country defaulting on its sovereign debt.
Dar said the wealth fund will initially have seven assets worth 2.3 trillion Pakistani rupee ($8.06 billion) parked in it.
A day earlier, Dar had said the government would establish sub-funds under the Pakistan Sovereign Wealth Fund (PSWF).
The development came after the National Assembly on Monday approved legislation to establish PSWF which aims to ensure sustainable economic development through the efficient management of funds and assets, adhering to the highest international standards, according to state-run APP.
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