'Infrastructure Bank'under study

Replying to questions during the meeting of Senate Standing Committee on Finance with Senator Ahmed Ali in the Chair to discuss code of corporate government, Waqar said that after closure of a number of Development Financial Institutions (DFIs) during the last decade, the government is re-considering to set up either an 'Infrastructure Bank' or 'Infrastructure Institution' as this is requirement of the country.

"We are thinking to set up a DFI, however, financing is a major problem. The long-term financing by the government can solve the issue of finance," he said. The Secretary Finance said the State Bank of Pakistan (SBP) has export-oriented financing facility, but with a very limited amount of Rs 15 billion which is nominal as compared to Rs 5 trillion assets of the banking sector. He said DFIs were very successful till mid 1990's as international financial institutions (IFIs) also provided them various credit lines, which have now dried up.

Waqar said the government is also considering launching of PPIB for 30 years and when this would be done the issue of development financing would be resolved more appropriately. He said that listing of shares of the public sector enterprises during the last decade have helped in increasing the depth of the local markets and listing of more companies especially from the power sector would further add to its depth.