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Bridging fiscal deficit
http://http://www.dailytimes.com.pk/default.asp?page=2010\06\10\story_10-6-2010_pg5_1
Pakistan to float sovereign bonds worth $1.5 billion
By Sajid Chaudhry
ISLAMABAD: Pakistan has plans to return to international capital markets in the medium term and the country will float foreign sovereign bonds worth $1.5 billion during the next three years (2010-13) to bridge its fiscal deficit, according to a major target assigned to the Ministry of Finance under the medium term budgetary framework (MTBF).
Rupee dominated bonds worth Rs 75 billion would also be floated over the next three years to avoid bank borrowing. National Development Bonds and Pakistan Domestic Sukuk (PDS) are supposed to be floated in the money market to secure more than Rs 6 billion on this account.
According to the future policy priorities assigned to the Ministry of Finance under MTBF, current account deficit is to be brought down to 3.7% of the GDP, so that the country is able to meet its foreign debt servicing obligations in the medium term. It has been envisaged that the expenditures will be kept at budgetary level and sanctioning of supplementary grants will be minimized to the possible extent by effectively monitoring the performance of the federal ministries and divisions against goals and targets assigned to them under MTBF.
The Debt Policy and Coordination office in the ministry of finance will create, enhance, and strengthen a legal and institutional framework for debt management within the government to meet its medium term debt obligations.
Implementation of the 7th National Finance Commission (NFC) Award recommendations will be a top priority of the ministry, besides adopting measures to maintain fiscal position and overdraft position of the provinces in accordance with ways and means limits.
A policy will be formulated to shift some of the federal government projects to the provinces due to the abolishment of concurrent list in the 18th amendment and 7th NFC Award.
Implementation of the Pay and Pension Commission reforms would also be a priority area of the ministry of finance, during next three years, will try to increase the salaries, allowances and pensions of the federal government employees in a gradual manner.
Enhancement of the scope of Public Private Partnership (PPP) projects to social sector will reduce burden on Public Sector Development Programme (PSDP).
Two new schemes - National Development Bond (NDB) and Pakistan Domestic Sukuk (PDS), are proposed to be floated in the money market to secure more than Rs 6 billion on this account.
The restructuring plan for eight important, state owned enterprises, (PIA, PR, PSM, TCP, UCP, PEPCO, PASSCO, NHA) as approved by the Cabinet, will be implemented.
There would be efforts to raise paid up capital of SME Bank, HBFC and FWBL up to the Minimum Capital Requirement (MCR) of State Bank of Pakistan (SBP).
Restructuring/revamping/modernization of ZTBL, Pakistan Mint and HBFC will also be initiated.
http://http://www.dailytimes.com.pk/default.asp?page=2010\06\10\story_10-6-2010_pg5_1
Pakistan to float sovereign bonds worth $1.5 billion
By Sajid Chaudhry
ISLAMABAD: Pakistan has plans to return to international capital markets in the medium term and the country will float foreign sovereign bonds worth $1.5 billion during the next three years (2010-13) to bridge its fiscal deficit, according to a major target assigned to the Ministry of Finance under the medium term budgetary framework (MTBF).
Rupee dominated bonds worth Rs 75 billion would also be floated over the next three years to avoid bank borrowing. National Development Bonds and Pakistan Domestic Sukuk (PDS) are supposed to be floated in the money market to secure more than Rs 6 billion on this account.
According to the future policy priorities assigned to the Ministry of Finance under MTBF, current account deficit is to be brought down to 3.7% of the GDP, so that the country is able to meet its foreign debt servicing obligations in the medium term. It has been envisaged that the expenditures will be kept at budgetary level and sanctioning of supplementary grants will be minimized to the possible extent by effectively monitoring the performance of the federal ministries and divisions against goals and targets assigned to them under MTBF.
The Debt Policy and Coordination office in the ministry of finance will create, enhance, and strengthen a legal and institutional framework for debt management within the government to meet its medium term debt obligations.
Implementation of the 7th National Finance Commission (NFC) Award recommendations will be a top priority of the ministry, besides adopting measures to maintain fiscal position and overdraft position of the provinces in accordance with ways and means limits.
A policy will be formulated to shift some of the federal government projects to the provinces due to the abolishment of concurrent list in the 18th amendment and 7th NFC Award.
Implementation of the Pay and Pension Commission reforms would also be a priority area of the ministry of finance, during next three years, will try to increase the salaries, allowances and pensions of the federal government employees in a gradual manner.
Enhancement of the scope of Public Private Partnership (PPP) projects to social sector will reduce burden on Public Sector Development Programme (PSDP).
Two new schemes - National Development Bond (NDB) and Pakistan Domestic Sukuk (PDS), are proposed to be floated in the money market to secure more than Rs 6 billion on this account.
The restructuring plan for eight important, state owned enterprises, (PIA, PR, PSM, TCP, UCP, PEPCO, PASSCO, NHA) as approved by the Cabinet, will be implemented.
There would be efforts to raise paid up capital of SME Bank, HBFC and FWBL up to the Minimum Capital Requirement (MCR) of State Bank of Pakistan (SBP).
Restructuring/revamping/modernization of ZTBL, Pakistan Mint and HBFC will also be initiated.
