ahlam1399
06-26-2016, 05:00 AM
Dar says there’ll be ** impact on already launched international bonds;
eco**mists say Brexit to impact future bonds
ISLAMABAD: Following the exit of the UK from the European Union (EU), Pakistan’s eco**my may face a blow for generating $1.750 billion through the international Eurobond and Sukuk bond during the financial year 2016-17 in view of the plunging of debt/bond market, The News has learnt.
For next few months at least, the potential investors from the UK as well as the EU might adopt ‘wait and see’ policy by remaining away from investing in any paper so the Islamabad’s planned launch of international bonds may be in the danger zone.
“There is need to explore alternative options, as we are contemplating option B to bridge gap on the external front at a time when the government is all set to come out of the IMF programme by September 30 this year,” said a top official of the government eco**mic team on condition of a**nymity.
The launch of bonds by Pakistan will be facing difficulties with the new developments where the EU is heading towards a crisis-like situation.
However, Pakistan’s eco**mic managers say the situation will **t have a far-reaching impact on the already launched bonds which are expected to mature by 2017.
One international bond which was launched during Musharraf regime in May 2007 would be maturing next financial year after 10 years so the government will have to pay its obligation on this front.
The top official in the Debt ****** of Ministry of Finance says there was ** impact on the already launched bonds, as there was ** negative impact so far on the Pakistani papers in the bond market.
Minister for Finance Ishaq Dar told The News on Friday that there would be ** impact on the already launched bonds, as either the investor would wait for maturity date or exit through the stock exchange sale without having any liability on the resource of the Government of Pakistan before due maturity.
However, Sakib Sherani, former eco**mic adviser to the finance ministry, said the recent crisis would impact on future bonds because the international investors would opt for wait and see policy.
Re**wned eco**mist Dr Ashfaque Hassan Khan said international investors would remain shy because Pakistan would be coming out of the IMF programme so they would **t go for investment keeping in view the recent Brexit crisis.
The government had projected to launch two international bonds —sovereign bond for generating $1 billion and Islamic Sukuk bond for generating around $750 million — in the budget 2016-17.
According to budget documents for 2016-17, the government seems all set to go ahead with the launch of Islamic Sukuk bond to generate Rs79 billion in the next financial year in order to meet the requirement of external fronts after saying goodbye to the IMF.
The government also plans to launch Eurobond in the upcoming financial year to bridge financing gap on the external front.
The government had dropped the idea of launching bond in the outgoing financial year because it preferred **t to go for expensive source of borrowing but the next year it would opt for this venue when it required more dollars at a time when the current account deficit might be facing pressures owing to possible rise in the import bill.
Pakistan had launched last Eurobond at higher mark-up causing hue and cry within and outside Parliament.
http://feeds.feedburner.com/~r/com/YEor/~4/yLopwclpFOU
أكثر... (http://feedproxy.google.com/~r/com/YEor/~3/yLopwclpFOU/130781-Will-Brexit-impact-1750-bn-generation-through-bonds)
eco**mists say Brexit to impact future bonds
ISLAMABAD: Following the exit of the UK from the European Union (EU), Pakistan’s eco**my may face a blow for generating $1.750 billion through the international Eurobond and Sukuk bond during the financial year 2016-17 in view of the plunging of debt/bond market, The News has learnt.
For next few months at least, the potential investors from the UK as well as the EU might adopt ‘wait and see’ policy by remaining away from investing in any paper so the Islamabad’s planned launch of international bonds may be in the danger zone.
“There is need to explore alternative options, as we are contemplating option B to bridge gap on the external front at a time when the government is all set to come out of the IMF programme by September 30 this year,” said a top official of the government eco**mic team on condition of a**nymity.
The launch of bonds by Pakistan will be facing difficulties with the new developments where the EU is heading towards a crisis-like situation.
However, Pakistan’s eco**mic managers say the situation will **t have a far-reaching impact on the already launched bonds which are expected to mature by 2017.
One international bond which was launched during Musharraf regime in May 2007 would be maturing next financial year after 10 years so the government will have to pay its obligation on this front.
The top official in the Debt ****** of Ministry of Finance says there was ** impact on the already launched bonds, as there was ** negative impact so far on the Pakistani papers in the bond market.
Minister for Finance Ishaq Dar told The News on Friday that there would be ** impact on the already launched bonds, as either the investor would wait for maturity date or exit through the stock exchange sale without having any liability on the resource of the Government of Pakistan before due maturity.
However, Sakib Sherani, former eco**mic adviser to the finance ministry, said the recent crisis would impact on future bonds because the international investors would opt for wait and see policy.
Re**wned eco**mist Dr Ashfaque Hassan Khan said international investors would remain shy because Pakistan would be coming out of the IMF programme so they would **t go for investment keeping in view the recent Brexit crisis.
The government had projected to launch two international bonds —sovereign bond for generating $1 billion and Islamic Sukuk bond for generating around $750 million — in the budget 2016-17.
According to budget documents for 2016-17, the government seems all set to go ahead with the launch of Islamic Sukuk bond to generate Rs79 billion in the next financial year in order to meet the requirement of external fronts after saying goodbye to the IMF.
The government also plans to launch Eurobond in the upcoming financial year to bridge financing gap on the external front.
The government had dropped the idea of launching bond in the outgoing financial year because it preferred **t to go for expensive source of borrowing but the next year it would opt for this venue when it required more dollars at a time when the current account deficit might be facing pressures owing to possible rise in the import bill.
Pakistan had launched last Eurobond at higher mark-up causing hue and cry within and outside Parliament.
http://feeds.feedburner.com/~r/com/YEor/~4/yLopwclpFOU
أكثر... (http://feedproxy.google.com/~r/com/YEor/~3/yLopwclpFOU/130781-Will-Brexit-impact-1750-bn-generation-through-bonds)