Pakistan will issue dollar-denominated sukuk soon: Ishaq Dar

[VCheng]

Sukuk (Arabic: صكوك‎, plural of صك Sakk, "legal instrument, deed, check") is the Arabic name for financial certificates, but commonly refers to the Islamic equivalent of bonds. Since fixed income, interest bearing bonds are not permissible in Islam, Sukuk securities are structured to comply with the Islamic law and its investment principles, which prohibits the charging, or paying of interest. Financial assets that comply with the Islamic law can be classified in accordance with their tradability and non-tradability in the secondary markets.

Sukuk - Wikipedia, the free encyclopedia

It is still a form of debt that must be repaid according to the terms.

 

[anonymus]

It is still a form of debt that must be repaid according to the terms.

By looks of it, it seem more like equity than debt.

 

[VCheng]

By looks of it, it seem more like equity than debt.

This is just another name to raise money by issuing bonds, which adds to the liabilities in the form of debts to be repaid when the bonds mature.

 

[Hyde]

and more loans

Ishaq Dar certainly proved right that he would bring the Foreign reserves above the level of 15 billion dollars. Even PPP managed to do the same after taking loans from the IMF. Wonderful Ishaq Dar is doing the same after renaming the term loan into bonds.

Anything you have to pay back is loan regardless of it's definitions. I have never been against Bonds as it doesn't tie you up with certain conditions you have to fulfil but when you are taking unnecessary loans, I really start smelling a conspiracy in it.

 

[genmirajborgza786]

I think the PML (N) is @ least bringing in some improvement as far as economy is concerned, they should be given chance to perform considering the type of economic problem with which Pakistan is tangled with , it will take sometime to get things in order I sincerely hope that they are given the time to stimulate the economy, with out hurdles & disturbance by some notorious political parties who hasn't been able to digest their defeat in the elections, this is where I hope & pray that mature political parties like the main opposition PPP provides its full supports to the gov't in its effort to better the economy of Pakistan

 

[Hyde]

I think the PML (N) is @ least bringing in some improvement as far as economy is concerned, they should be given chance to perform considering the type of economic problem with which Pakistan is tangled with , it will take sometime to get things in order I sincerely hope that they are given the time to stimulate the economy, with out hurdles & disturbance by some notorious political parties who hasn't been able to digest their defeat in the elections, this is where I hope & pray that mature political parties like the main opposition PPP provides its full supports to the gov't in its effort to better the economy of Pakistan

The only thing I can say say, they are better than last PPPP's government and the PML-N/PPPP of 90s.

Apparently, Musharraf was doing way better economically... But they have apparently learned from past mistakes so less corruption is visible.. may be skills to hide corruption or better commitment for the country, the time will decide.

 

[farhan_9909]

and more loans

Ishaq Dar certainly proved right that he would bring the Foreign reserves above the level of 15 billion dollars. Even PPP managed to do the same after taking loans from the IMF. Wonderful Ishaq Dar is doing the same after renaming the term loan into bonds.

Anything you have to pay back is loan regardless of it's definitions. I have never been against Bonds as it doesn't tie you up with certain conditions you have to fulfil but when you are taking unnecessary loans, I really start smelling a conspiracy in it.

We need to understand that foriegn Investment will only come into Pakistan when the Country credit rating is Good.if our Credit rating is Good,We will get more Rating by Moody.And you know Moody rating and related other firms rating can really bring investment into any country.

As i said earlier.We need atleast 50Billion dollars in the next 3-4years as reserves

 

[Hyde]

We need to understand that foriegn Investment will only come into Pakistan when the Country credit rating is Good.if our Credit rating is Good,We will get more Rating by Moody.And you know Moody rating and related other firms rating can really bring investment into any country.

As i said earlier.We need atleast 50Billion dollars in the next 3-4years as reserves

Rating part is understandable but 50 billion dollars of reserves?

Why do you think we need 50 billion dollars of reserves for foreign investment?

Even Australia or Spain does not have 50 billion dollars of reserves and they have trillion dollar economy.

List of countries by foreign-exchange reserves - Wikipedia, the free encyclopedia

PS: I am not discouraging the importance of foreign reserves but I would rather use the unnecessary reserves for more industries and create more n more jobs for the people rather than keeping them in a bank account for nothing.

 

[farhan_9909]

Rating part is understandable but 50 billion dollars of reserves?

Why do you think we need 50 billion dollars of reserves for foreign investment?

Even Australia or Spain does not have 50 billion dollars of reserves and they have trillion dollar economy.

List of countries by foreign-exchange reserves - Wikipedia, the free encyclopedia

PS: I am not discouraging the importance of foreign reserves but I would rather use the unnecessary reserves for more industries and create more n more jobs for the people rather than keeping them in a bank account for nothing.

Because neither Australia nor spain has the population even close to Pakistan.

Our Per capita and all the other standard are almost similar to India but our reserve's are 30times less than them.We have the capacity to bring them to 50Billion dollars in 3-4 or max 5 years.

 

[Hyde]

Because neither Australia nor spain has the population even close to Pakistan.

Our Per capita and all the other standard are almost similar to India but our reserve's are 30times less than them.We have the capacity to bring them to 50Billion dollars in 3-4 or max 5 years.

Our reserves stood at 16+ billion dollars during the era of Musharraf as well.

It's 6 years passed and did we manage to even bring it close to 20 billion dollars? Lets be realistic. I would highly appreciate if we can even bring it close to 22-25 billion dollars in the next 5 years and stabilise it.

 

[VCheng]

Rating part is understandable but 50 billion dollars of reserves?

Why do you think we need 50 billion dollars of reserves for foreign investment?

Even Australia or Spain does not have 50 billion dollars of reserves and they have trillion dollar economy.

List of countries by foreign-exchange reserves - Wikipedia, the free encyclopedia

PS: I am not discouraging the importance of foreign reserves but I would rather use the unnecessary reserves for more industries and create more n more jobs for the people rather than keeping them in a bank account for nothing.

The appropriate amount of reserves is determined by the number of months they could finance imports, not some arbitrary number. The minimum by IMF standards is three months, but many countries try for a year or even more coverage of the import bill.

 

[farhan_9909]

Our reserves stood at 16+ billion dollars during the era of Musharraf as well.

It's 6 years passed and did we manage to even bring it close to 20 billion dollars? Lets be realistic. I would highly appreciate if we can even bring it close to 22-25 billion dollars in the next 5 years and stabilise it.

Last month when the reserve's crossed the mark of 10Billion dollars.

Pakistan rating was also improved

Outlook stable: S&P affirms Pakistan’s ratings at ‘B-/B’ – The Express Tribune

When it will cross the mark of 15Billion dollars or as it increases,The rating will also be increased toward more stability.

It was because musharaf left and with the entry of PPP in 2008,Initially the Stock market crashed by 8thousand points in only 4 months,Loan deal was striked with IMF but they still didnt improved the Economy.If musharaf would had remain till 2013.We might had more than 40-45Billion dollars as reserve's today.

When country like Nigera can bring it to 40Billion dollars and increasing each year than why not Pakistan.we are also said to hit 70% literacy mark by 2018

 

[Hyde]

Last month when the reserve's crossed the mark of 10Billion dollars.

Pakistan rating was also improved

Outlook stable: S&P affirms Pakistan’s ratings at ‘B-/B’ – The Express Tribune

When it will cross the mark of 15Billion dollars or as it increases,The rating will also be increased toward more stability.

It was because musharaf left and with the entry of PPP in 2008,Initially the Stock market crashed by 8thousand points in only 4 months,Loan deal was striked with IMF but they still didnt improved the Economy.If musharaf would had remain till 2013.We might had more than 40-45Billion dollars as reserve's today.

When country like Nigera can bring it to 40Billion dollars and increasing each year than why not Pakistan.we are also said to hit 70% literacy mark by 2018

like VC explained we need to cover the import bill and wages for at least 3-6 months. We are then on the safe side. The gap between imports and exports is a major source of concern. The problem what you are not noticing is if we buy 43 billion dollars in imports, we are selling 23-25 billion dollars in exports. So the net deficit of 18-20 billion dollars is a huge minus factor for our reserves. You talk about Nigeria, see Nigeria has exports of about 100 billion dollars compared to imports of only 70 billion dollars. They are in surplus so it provides stability to their foreign reserves. We are in deficits so hoping for huge foreign reserves is a dream come true under current circumstances.

Imagine if we were not receiving aid from the USA, loans from IMF/WB and solely working on our own, how would you make payments for imports? I would be happy to have covered only 6 months of import bill making sure we can use rest of the money to increase exports, that is good for economy, unemployment, taxes... everything.

 

[farhan_9909]

like VC explained we need to cover the import bill and wages for at least 3-6 months. We are then on the safe side. The gap between imports and exports is a major source of concern. The problem what you are not noticing is if we buy 43 billion dollars in imports, we are selling 23-25 billion dollars in exports. So the net deficit of 18-20 billion dollars is a huge minus factor for our reserves. You talk about Nigeria, see Nigeria has exports of about 100 billion dollars compared to imports of only 70 billion dollars. They are in surplus so it provides stability to their foreign reserves. We are in deficits so hoping for huge foreign reserves is a dream come true under current circumstances.

Imagine if we were not receiving aid from the USA, loans from IMF/WB and solely working on our own, how would you make payments for imports? I would be happy to have covered only 6 months of import bill making sure we can use rest of the money to increase exports, that is good for economy, unemployment, taxes... everything.

Well With the increase in Export,this problem will also be solved.Though Export need to be increased faster than we are doing now.Which is only possible to first give maximum Energy to our existing industry and than work for creating more

 

[Hyde]

Well With the increase in Export,this problem will also be solved.Though Export need to be increased faster than we are doing now.Which is only possible to first give maximum Energy to our existing industry and than work for creating more

This will not be a problem if we can match the exports to imports. Right now whats happening is

Imports: 43 billion dollars?
Exports: 25 billion dollars? + more than 12 billion dollars of remittence received by overseas Pakistanis + loan/aid/bonds etc to cover up rest of the amount to at least match it to zero. We are in minus as you see

It's really hard to imagine 40-50 billion dollars as you were suggesting under such circumstances?

 

[farhan_9909]

This will not be a problem if we can match the exports to imports. Right now whats happening is

Imports: 43 billion dollars?
Exports: 25 billion dollars? + more than 12 billion dollars of remittence received by overseas Pakistanis + loan/aid/bonds etc to cover up rest of the amount to at least match it to zero. We are in minus as you see

It's really hard to imagine 40-50 billion dollars as you were suggesting under such circumstances?

But as the Export has increased by 18% and will continue to be so.

It means if for 4 years our Export Increase by 18% each year than our Export by 2018 will be

43-44Billion dollars.Add to this the foriegn remittance with an average increase of 8-9% per year.