Opposition criticises: Eurobond issue slammed

PPP Senator Saleem Mandviwalla criticised the economic policies of the incumbent government


Ppi September 30, 2015
PHOTO: FILE

KARACHI:


Commenting on Pakistan’s latest Eurobond issue, Pakistan Peoples Party criticised the government and has decided to submit an adjournment motion in the Senate.


PPP Senator and Standing Committee on Finance and Revenue Chairman Saleem Mandviwalla termed the issuance of Euro Bonds by Pakistan as a “disaster” for the economy, adding that the matter would be discussed in the upper house and Senate Finance Committee.


He criticised the economic policies of the incumbent government, noting how consumers had been laden with high indirect and withholding taxes that had crushed their purchasing power. He also expressed disappointment over government’s economic policies to build foreign reserves of the country.


“Who will pay the $2.5 billion in the next 10 years?” he questioned. “Ultimately the people of Pakistan will have to suffer to reduce the present government’s burden.”


He also questioned why the ministry could not negotiate till the third quarter for the global markets to recover to get better rates. 

Published in The Express Tribune, October 1st, 2015.

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COMMENTS (2)

Maindak | 5 years ago | Reply @Omar: Because the interest rate is really high. 8.25% dollar interest rate. After rupee depreciation it'll be at least 11-12%. Also it's a sign of bad government policy. They should be seeking to increase exports and/or remittances in order to build forex reserves. Instead, all they are doing is borrowing more and more dollars. These will have to be paid back with interest and that means they are just kicking the can down the road. In future we'll face yet another balance of payments crisis.
Omar | 5 years ago | Reply Criticism without any concrete argument is stupid and ignorant. Governments worldwide issue bonds on a regular basis. Why shouldn't Pakistan do that as well? Give us your reasons.
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