ZCZC
BCN-12
PAKISTAN-ECONOMY-INVESTMENT-BONDS
Pakistan seeks investment from overseas citizens with new bond
ISLAMABAD, Feb 1, 2019 (BSS/AFP) – Pakistan has launched a new investment
certificate for overseas citizens, aimed at easing the country’s balance of
payments crisis, Prime Minister Imran Khan announced Thursday.
The scheme, called the “Make Pakistan” Certificate (PBC), is a sovereign
US dollar-denominated bond with a minimum investment of $5,000.
“The purpose of launching the bond is to steer the country out of a very
difficult period of its history by improving balance of payments, reducing
budget and trade deficits,” Khan said at a ceremony in Islamabad.
“I urge overseas Pakistanis to buy these certificates and invest in
Pakistan and its bright future,” he added.
The PBCs, which have no maximum investment amount, are available in three
and five-year maturities, yielding 6.25 percent and 6.75 percent,
respectively, according to the government.
Forecasts by the IMF and World Bank suggest the Pakistani economy is
likely to grow between 4.0 and 4.5 percent for the fiscal year ending June
2019, compared to 5.8 percent growth in the last fiscal year.
Khan has launched a highly publicised austerity drive since being sworn
in, including auctioning off government-owned luxury vehicles and buffaloes,
in addition to seeking loans from “friendly countries” and making overtures
to the IMF.
United Arab Emirates, Pakistan’s largest trading partner in the Middle
East and a major investment sources, recently offered $3 billion to support
Pakistan’s battered economy.
Islamabad also secured $6 billion in funding from Saudi Arabia and struck
a 12-month deal for a cash lifeline during Khan’s visit to the kingdom in
October.
It has also received billions of dollars in Chinese loans to finance
ambitious infrastructure projects.
A team from the International Monetary Fund visited Pakistan in November
to discuss a possible bailout with officials but talks ended without
agreement.
BSS/AFP/HR/1000