ISLAMABAD – Business tycoon Mian Mansha makes a big proposal offer tofederal government.
A meeting chaired by Prime Minister’s Advisor on Finance Dr Abdul HafeezShaikh discussed the issuance of Sukuk and Swap bonds for clearance of duesof independent power producers (IPPs).
The proposal has come from leading businessman Mian Mohammad Mansha. Themeeting discussed various proposals to reduce power sector circular debt,clearance of dues of power producers, and issuance of bonds to reduce thecircular debt of the power sector and directed Ministry of Finance andMinistry of Energy to come up with unanimous proposals to the ECC afterconsideration and mutual agreement.
Mansha is a key player in the sector with interests in at least fourindependent power producers (IPPs).
The meeting was attended by governor State Bank of Pakistan (SBP), chairmanFederal Board of Revenue (FBR), secretary finance and industrialistsincluding Mian Mohammad Mansha and Shahzad Saleem.
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The government wants to reduce the circular debt of the power sector butcould not issue planned Rs 200 billion bonds and now the InternationalMonetary Fund’s (IMF’s) approval will be sought for issuance of Sukuk.However, it remains unclear whether Pakistani authorities have taken up thematter with the review mission currently visiting the country for the firstreview of $6 billion EFF.
Officials said that the country’s total circular debt is currently inchingup towards Rs 1.7 trillion with active circular debt in excess of Rs. 860billion as of September end.
Recently, the Pakistan Energy Sukuk-I (PES-I) issue of Rs 200 billion gotlisted on the Pakistan Stock Exchange (PSX). The PES-I is the largestShariah-compliant financial instrument ever listed on a stock exchange inPakistan. These Sukuks were approved during the last financial year.
