Government to issue bonds worth Rs65b

The launch of National Development Bonds is being considered by the central government to fund development projects.

ISLAMABAD: The launch of National Development Bonds worth Rs65 billion is being considered by the central government in order to fund development projects.

According to sources, the government plans to issue development bonds to raise funds for various development projects across the country.

These bonds are being considered an alternative to taking money from the State Bank of Pakistan in light of the International Monetary Fund’s condition to reduce borrowing from the central bank.

The government is also planning to register these bonds on the stock exchanges so that they are easily tradable. The maturity period of the bonds is yet to be decided.

Sukuk bonds

It has also been learnt that in order to ensure financial self-reliance of state-run organisations, the government has endorsed the issuance of domestic Sukuk bonds.

In this regard, a domestic sukuk company has already been established. Through this company, state organisations will be able to issue bonds on their own in line with the value of their assets.

The Capital Development Authority is expected to raise approximately Rs20 billion through the sale of domestic sukuk bonds within the next two months.

Published in The Express Tribune, August 6^th, 2010.