ISLAMABAD – Finance Advisor Hafiz Sheikh hints at floating internationalbonds and exports rise by $26 billions.
Finance Adviser, Abdul Hafeez Shaikh, has stated that Pakistan plans tofloat overseas bonds in the coming months. This was disclosed by him in aspecial interview to Bloomberg.
He reiterated the government’s objective of improving the country’seconomic conditions. Preparations are underway for the sale of Eurobonds,Sukuk and Chinese renminbi bonds in the financial year that started thismonth, Shaikh told Bloomberg.
The government aims to reduce its budget deficit and boost sustainabledollar inflows via exports. The plan is to lift overseas shipments to $26.8billion this fiscal year by granting subsidies and concessions onraw-material imports, he said.
“The economy was in pretty bad shape. The idea was to shore up the externalfront. We have been able to mobilize resources,” said the premier’s adviser.
Prime Minister Imran Khan has relied on funds from allies like Saudi Arabiaas well as from the World Bank and Asian Development Bank to boost thecountry’s finances after years of economic mismanagement, said the report.
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Pakistan last tapped the overseas debt market in November 2017, and raised$2.5 billion, according to data compiled by Bloomberg.
“We’re trying to focus on the business side and have realized that theprivate sector needs to play its role,” said Shaikh. All this can helpPakistan “avoid a debt trap,” he said.
The International Monetary Fund (IMF), on Wednesday, approved a loan of $6billion for Pakistan in a 39-month extended arrangement to support thecountry’s economic reforms program.
