Pakistan to get $1.7bn from World Bank by May: Dar

Road shows for $500 million worth Eurobonds to be completed by mid-April, to be launched at indicative price of 6.5%.

ISLAMABAD: Federal Minister for Finance Ishaq Dar said on Thursday said that the World Bank (WB) would provide Pakistan US$ 1.7 billion for different energy and infrastructure projects including the Dasu Hydro Power Project by may.

Addressing the launch ceremony of the government debt securities system at the Islamabad Stock Exchange (ISE) and the Lahore Stock Exchange (LSE) in Islamabad on Thursday, Dar said that WB was satisfied with the government’s efforts of bringing reforms to improve the country’s economy and the amount from the bank was expected by May.

The minister added that the government would complete all three road shows for Eurobonds by mid-April, after which Pakistan will launch Eurobonds worth $500 million to improve foreign reserves in the country.

“The Eurobonds will be launched for the first time in seven years with an indicative price of 6.5 per cent,” he added.

Dar said the country has about $10 billion foreign reserves at the moment and the government aims to raise it to $20 billion over the next three years.

Regarding the spectrum auction, Dar said that the process has started and will be complete by April 21.

The minister said that the government is focusing on investment led economic growth which will prove to be sustainable for the country.

“Sustainable economic growth can only be achieved when there is investment-led growth in the country,” he said. “There is much to be done and we have to spend over Rs3000 billion during the next three to four years for the completion of different mega projects in the country.”

Dar said the country’s equity market was performing well, and due to the government’s efforts in improving the economy the KSE increased by 30 per cent from 19,000 points to 26,000 points.

Chairman LSE and former Advisor to the Prime Minister on Finance Dr Salman Shah said that the launch of a new system, treasury bills will be offered to the public giving them the opportunity to invest in a risk free market.

He stressed the need to attract foreigners to Pakistan’s stock market so that foreign reserves may improve.

Chairman ISE Rashid Zahid said on the occasion that it is the broad objective of the government to improve the liquidity in the debt and capital markets, and diversify the investors base of government and corporate debt markets.

Chairman Securities and Exchange Commission of Pakistan Tahir Mehmood and Advisor to the Finance Minister Rana Asad Ameen were also present on the occasion.