Govt to float bonds to raise Rs1.8tr by pledging major airports and road networks

[ziaulislam]

Govt to float bonds to raise Rs1.8tr

Seeks cabinet’s approval to pledge major airports and road network as collateral

The government has sought permission of the federal cabinet to pledge the country’s major airports and road network to raise around Rs1.8 trillion worth debt in the next fiscal year to finance budget deficit and at the same time save some interest cost.
In its revised list of assets that the Ministry of Finance wants to give in collateral to international and domestic lenders, the government has dropped Fatima Jinnah Park, Islamabad. But three motorways, three international airports and Islamabad Expressway have been added in the list, said sources in the Ministry of Finance.

The finance ministry has placed a request before the federal cabinet that in order to support the government’s budgetary position and promote Islamic banking industry it intends to issue Ijara Sukuk in the domestic and international markets.

The federal cabinet will take a decision today (Tuesday). The asset-backed borrowings carry relatively less cost compared with conventional debt.

The finance ministry has requested the cabinet that there is an urgent need to identify new unencumbered assets to ensure uninterrupted issuance of Ijara Sukuk in the domestic as well as international capital markets. The debt raised through the Sukuk bonds, which are backed by the government’s assets, costs relatively less than the conventional bonds.

The federal cabinet had directed in January this year to identify options of underlying assets for Sukuk issuances.

The Ministry of Finance has identified M-1 (Islamabad-Peshawar) and M-3 (Pindi-Bhatian-Faisalabad) motorways, Islamabad Expressway and Islamabad, Lahore and Multan international airports. It also wants to pledge the only remaining section of the Lahore-Islamabad motorway to borrow from the lenders, said the sources. At present Islamabad-Chakwal section of M2 Motorway is unencumbered and the rest of the motorway has been pledged against the debt. The M1 and M3 are also free of any charges.

The finance ministry had requested the National Highway Authority (NHA) and Civil Aviation Authority (CAA) to grant no objection certificates to utilise these assets for raising debt.

The CAA has not yet responded while the NHA has demanded compensation for using its assets to raise debts. The Ministry of Finance has requested the federal cabinet that it may be given permission to pledge these assets without payment of compensation to any of the departments.

Although, the government has not yet updated the revised valuation of these assets, the finance ministry has assessed their value at Rs2.2 trillion on the basis of old valuations and some latest estimates in case of airports.

The sources said that the Ministry of Finance plans to raise Rs1.76 trillion worth debt through issuance of domestic and foreign Islamic bonds. This includes $3.5 billion or Rs560 billion foreign Sukuk.

The finance ministry has estimated the value of Lahore airport at Rs980 billion or $6.1 billion, Islamabad International Airport Rs230 billion or $1.4 billion and Multan airport Rs320 billion or $2 billion.

The value of Islamabad Expressway is estimated at Rs470 billion or $3 billion.

The finance ministry sources said that the Jinnah International Airport, Karachi, has already been exhausted and the government has raised over Rs700 billion worth debt by giving the airport in collateral.

So far, the Ministry of Finance has conducted 32 domestic Sukuk transactions worth Rs1.6 trillion and four international Ijara Sukuk to raise $3.6 billion.

The Pakistan Peoples Party (PPP) government (2008-13) conducted 14 Sukuk transactions and raised Rs501.5 billion debt through Sukuk bonds by pledging various assets. The Pakistan Muslim League-Nawaz (PML-N) government (2013-2018) raised Rs435 billion debt through five Sukuk transactions.

The official record showed that the Pakistan Tehreek-e-Insaf (PTI) government in the past two-and-a-half years already conducted 12 Sukuk transactions and raised Rs762 billion debt. The pace and quantum of borrowing has increased during the tenure of the PTI government due to ever-widening budget deficit, the official documents revealed.

Govt to float bonds to raise Rs1.8tr | The Express Tribune

Seeks cabinet’s approval to pledge major airports and road network as collateral

tribune.com.pk

https://www.facebook.com/video.php?v=527508065080937

https://twitter.com/x/status/1380130598547824642

Better then giving 30% return

because it was PML-N who increased the deficit both fiscal and CAD to such extent and then to address the deficit arranged finance by issuing high rates international bound .... and If I remember correctly [i have forget the details it happened when Ishaq Dar Finance Minister] one such transaction was made at 8% rate in USD while bonds issued by other countries were less than 5%

Ishaq Dar was THE REAL ECONOMIC HIT MAN in Pakistan.

Dont blame ishaq dar
It is people of pakistan that wanted him to do so.

Ishaq dar himself never wanted this..he did this under pressure from voters..and even IK may end up doing so..

Voters pressured him to squash inflation via import opening and rupee subsidy

This is what he wanted..

What happened was oppsoite UNDER VOTER PRESSURE
Same happened in mushi era
Same may happen again


Problem arent poltical parties but people who support populist ideas, free everything and even are okay with kick backs and corruption

People today say corruption isnt a problem inflation is..

 

[Desprado]

because it was PML-N who increased the deficit both fiscal and CAD to such extent and then to address the deficit arranged finance by issuing high rates international bound .... and If I remember correctly [i have forget the details it happened when Ishaq Dar Finance Minister] one such transaction was made at 8% rate in USD while bonds issued by other countries were less than 5%

Ishaq Dar was THE REAL ECONOMIC HIT MAN in Pakistan.

One credit should be given to dar is that our FDI increased, major investment came and major investment.

I am serious this government is much worse than Dar. They wasted more 5 billion dollar in to PEG PKR but still they devalued to 144 PKR. Dar brought Pakistan from grey to white list with less than year in FATF ,however, we have done everything what FATF asked for still we cannot come out of grey list is a government weak diplomacy and yes Insallah we will come out of grey to white within this year but this government has major diplomacy issue. PMLN did not had a foreign minster they handle much better economic diplomacy than PTI ever did.

Why PM Khan daily curse Asad Umar that he was the main reason for the delay in IMF program and PM says that we should have gone to IMF from the get go. So who fault was that? Hafeez Sheik was removed due to bad negotiation with IMF according to Kamran Khan and even said by PM him self in live public call.


You see Reza Baqir will have the same faith because their no check or monitoring on him that why currency is losing it's value since 5 week, where your other region has no issue like this?

Please grow up look around the world. Even default country like Argentina has increased reserve to 5 billion in 4 months. Argentina and Pakistan are running same but they difference is that Argentina officially admitted that they are done but PTI is not accepting their mistake that bring Market base currency was the worst idea that came with. No improvement export, no investment, debt increased, no increase on reserve, perception worst than a default country.


Do you anywhere the world right now losing 50 paisa everyday expect default country?

 

[HRK]

One credit should be given to dar is that our FDI increased, major investment came and major investment.

I am serious this government is much worse than Dar. They wasted more 5 billion dollar in to PEG PKR but still they devalued to 144 PKR. Dar brought Pakistan from grey to white list with less than year in FATF ,however, we have done everything what FATF asked for still we cannot come out of grey list is a government weak diplomacy and yes Insallah we will come out of grey to white within this year but this government has major diplomacy issue. PMLN did not had a foreign minster they handle much better economic diplomacy than PTI ever did.

Why PM Khan daily curse Asad Umar that he was the main reason for the delay in IMF program and PM says that we should have gone to IMF from the get go. So who fault was that? Hafeez Sheik was removed due to bad negotiation with IMF according to Kamran Khan and even said by PM him self in live public call.


You see Reza Baqir will have the same faith because their no check or monitoring on him that why currency is losing it's value since 5 week, where your other region has no issue like this?

Please grow up look around the world. Even default country like Argentina has increased reserve to 5 billion in 4 months. Argentina and Pakistan are running same but they difference is that Argentina officially admitted that they are done but PTI is not accepting their mistake that bring Market base currency was the worst idea that came with. No improvement export, no investment, debt increased, no increase on reserve, perception worst than a default country.


Do you anywhere the world right now losing 50 paisa everyday expect default country?

you are entitled to your opinion .... and I respect your right to have an opinion but I don't agree with it

 

[Desprado]

you are entitled to your opinion .... and I respect your right to have an opinion but I don't agree with it

You do not not have too because it is your right ,however, i would request to ask from your heart did we achieved anything in PTI era? Answer is no. Nothing.

 

[Patriot forever]

One credit should be given to dar is that our FDI increased, major investment came and major investment.

I am serious this government is much worse than Dar. They wasted more 5 billion dollar in to PEG PKR but still they devalued to 144 PKR. Dar brought Pakistan from grey to white list with less than year in FATF ,however, we have done everything what FATF asked for still we cannot come out of grey list is a government weak diplomacy and yes will come out of grey to white within this year but this government has major diplomacy issue. PMLN did not had a foreign minster they handle much better economic diplomacy than PTI ever did.

Why PM Khan daily curse Asad Umar that he was the main reason for the delay in IMF program and PM says that we should have gone to IMF from the get go. So who fault was that? Hafeez Sheik was removed due to bad negotiation with IMF according to Kamran Khan and even said by PM him self in live public call.


You see Reza Baqir will have the same faith because their no check or monitoring on him that why currency is losing it's value since 5 week, where your other region has no issue like this?

Please grow up look around the world. Even default country like Argentina has increased reserve to 5 billion in 4 months. Argentina and Pakistan are running same but they difference is that Argentina officially admitted that they are done but PTI is not accepting their mistake that bring Market base currency was the worst idea that came with. No improvement export, no investment, debt increased, no increase on reserve, perception worst than a default country.


Do you anywhere the world right now losing 50 paisa everyday expect default country?

Bro i mean no offence but you sound like someone who reads alot but is unable to understand or comprehend anything.

Go through the economic forum and you will find your answers. Yes we all know where the FDI was coming, we are and will be returning it in future by a factor of 5-8 times

Had we gone to imf immediately with 19.5b CAD, critical reserves with huge short term maturing loans, high artificial currency, they would have skinned us alive with terms and conditions.

Asad umer had to spend that amount of money so that the rupee dosnt fall overnight to its market value (sudden shock would have crippled the economy) but gradually over a course of 6-8 months so that businesses can adapt. Atleast you understood how much dollars we were buring during plmn time.

Currency is market based it will go up and down. Our economy is relatively new to market based currency, with time it will evolve and adapt and fluctuations will be more subtle.

Our reserves are stable and have grown over last year. You never had a problem with reserves in 2018 at its lowest but now there is a problem.

Stop the foolish tantrums.

 

[Desprado]

Bro i mean no offence but you sound like someone who reads alot but is unable to understand or comprehend anything.

Go through the economic forum and you will find your answers. Yes we all know where the FDI was coming, we are and will be returning it in future by a factor of 5-8 times

Had we gone to imf immediately with 19.5b CAD, critical reserves with huge short term maturing loans, high artificial currency, they would have skinned us alive with terms and conditions.

Asad umer had to spend that amount of money so that the rupee dosnt fall overnight to its market value (sudden shock would have crippled the economy) but gradually over a course of 6-8 months so that businesses can adapt. Atleast you understood how much dollars we were buring during plmn time.

Currency is market based it will go up and down.

Our reserves are stable and have grown over last year. You never had a problem with reserves in 2018 at its lowest but now there is a problem.

Stop the foolish tantrums.

So PM Khan is lying that we should have gone to IMF from August 2018? Ok.

 

[HRK]

Better then giving 30% return

Dont blame ishaq dar
It is people of pakistan that wanted him to do so.

Ishaq dar himself never wanted this..he did this under pressure from voters..and even IK may end up doing so..

Voters pressured him to squash inflation via import opening and rupee subsidy

This is what he wanted..

What happened was oppsoite UNDER VOTER PRESSURE
Same happened in mushi era
Same may happen again


Problem arent poltical parties but people who support populist ideas, free everything and even are okay with kick backs and corruption

People today say corruption isnt a problem inflation is..

plz don't tell me what Ishaq Dar used to say ... tell me what he did ... I don't have respect for his words but my concerns are related to his action .....

Just in this short video clip he was trying to give lecture about "Emerging Market" and increase of export ..... but at that time

- He removed all the safeguards for local industry,

- Energy was most expensive in the region because of the his collaboration with IPPs and specially due to clause of capacity payments ....

- And above all artificially overvalued currency

- Increased Cost of doing business

in short he increased the cost of all economic inputs be it for industry or agriculture and decrease the cost of imports ....

But you you are telling me all of those policies were "Public Demand" ....

did we achieved anything in PTI era? Answer is no. Nothing.

yes ...

 

[Patriot forever]

So PM Khan is lying that we should have gone to IMF from August 2018? Ok.

Personally i have no idea what context he said it (if he did).
Basically from pti viewpoint we lost a year ( it would have taken 2 years instead of 3 for stabilization) but for the common man it would have been much much more difficult.

 

[Mentee]

Gutter he reh gy girvi rkhny k ley baaki to the oxford breed has pledged everything to make ends meet like a junkie .

 

[Desprado]

Personally i have no idea what context he said it (if he did).
Basically from pti viewpoint we lost a year ( it would have taken 2 years instead of 3 for stabilization) but for the common man it would have been much much more difficult.

7 times PM Khan has cursed Asad Umar on live interview that we did a massive mistake to not go to IMF from the start because we thought that or advised by my FM that we could avoid IMF by going to Gulf countries and he said we were and we caused massive destabilization in the market 9 months because it was a fantasy to avoid IMF.

 

[Mentee]

7 times PM Khan has cursed Asad Umar on live interview that we did a massive mistake to not go to IMF from the start because we thought that or advised by my FM that we could avoid IMF by going to Gulf countries and he said we were and we caused massive destabilization in the market 9 months because it was a fantasy to avoid IMF.

Did the state charge asad umar with pushing millions below the poverty line ?

 

[ziaulislam]

plz don't tell me what Ishaq Dar used to say ... tell me what he did ... I don't have respect for his words but my concerns are related to his action .....

Just in this short video clip he was trying to give lecture about "Emerging Market" and increase of export ..... but at that time

- He removed all the safeguards for local industry,

- Energy was most expensive in the region because of the his collaboration with IPPs and specially due to clause of capacity payments ....

- And above all artificially overvalued currency

- Increased Cost of doing business

in short he increased the cost of all economic inputs be it for industry or agriculture and decrease the cost of imports ....

But you you are telling me all of those policies were "Public Demand" ....

yes ...

He did this because that was popular..
And it stil is

Hence PMLN will win elections again

Something right is not always popular

The reason why PMLN took pakistan to IMF 10X and yet half of educated people and MOST EDUCATED PROVINCE supports them is because its popular

You think ishaq dar didnt know this will destroy the economy, he knew it but it was peoples choice to destroy the economy for cheaper imported goods.

Results productivity got destroyed and inflatiob decreased..people were happy..hence PMLN won again in 2018 in punjab(though tareen stole that mandidate)

Personally i have no idea what context he said it (if he did).
Basically from pti viewpoint we lost a year ( it would have taken 2 years instead of 3 for stabilization) but for the common man it would have been much much more difficult.

Dollar would have hit 200
We would have lost much more

The delay was right decison

We went to IMF with deficit of 4% (1b/month)vs projected 8%(2b$/month) in 2018

IMF deficits that led to 30% devalution in past were 2-3% PPPP had 3% deficit, PMLN 2%

So PM Khan is lying that we should have gone to IMF from August 2018? Ok.

Yes ishaq dar was good he took ys out of grey list but miftah ismail was evil he put us back into grey list to punish the army for what they did to PMLN

 

[Mentee]

The reason why PMLN took pakistan to IMF 10X and yet half of educated people and MOST EDUCATED PROVINCE supports them is because its popular

Unfortunately Popularity plays a vital role in the pakistani context ! I.k also got voted into office by the largest province based on his cricket carrier and the charisma attached to it . Now everyone is paying for falling for the vanity. Sindhis and balochis however made a "smart" choice .

 

[Patriot forever]

7 times PM Khan has cursed Asad Umar on live interview that we did a massive mistake to not go to IMF from the start because we thought that or advised by my FM that we could avoid IMF by going to Gulf countries and he said we were and we caused massive destabilization in the market 9 months because it was a fantasy to avoid IMF.

I do not recall.

Anyways i gave you a straight apolitical answer. Those gulf countries allowed you to avoid the brunt of imf ( if you think the current program is hard or unfair that program would have been next level)

Atleast you realize now how f*cked up our country was in 2018, thats a big improvement.

We are pass that stage now, and are in a very stable position as compared to 2018.

 

[Desprado]

I do not recall.

Anyways i gave you a straight apolitical answer. Those gulf countries allowed you to avoid the brunt of imf ( if you think the current program is hard or unfair that program would have been next level)

Atleast you realize now how f*cked up our country was in 2018, thats a big improvement.

We are pass that stage now, and are in a very stable position as compared to 2018.

Worst than 2018. We are way more worse than 2018 crisis.