Islamabad:
The Ministry of Finance signed a long -term financing center of five years for $ 1 billion, the government said in a statement on Wednesday.
The financing is directed by Dubai Islamic Bank and Standard Chartered, and the Islamic section forms 89% of the installation of loans, according to the statement.
“The Ministry of Finance has signed a syndicated term finance installation of $ 1,000 million partially guaranteed by a guarantee based on the ADB program of the ADB program improved mobilization and use of resources'”, according to a press release.
“The installation is a historical transaction for the Pakistan government that demonstrates strong support from the main financatives in the region. This is a multiple five -year installation that includes Islamic and conventional sections,” he said.
The Ministry of Finance said that the Islamic installation was structured to fully comply with AAOIIFI standards, and represents 89 percent of the total financing amount, and the remaining 11 % was conventional financing.
He added: “The transaction was also the first installation backed by the ADB policy guarantee linked to policy reform measures carried out by an ADB member country, that is, Pakistan.”
“The ADB program is designed to support Pakistan to build fiscal resilience and stability in the long term and has supported Pakistan’s re -entry into international commercial markets, with an important interest of the Banks of the Middle East,” said the press release.
Meanwhile, the Ministry announced that it successfully raised more than RS1.2 billion through an important auction of government bonds held on Wednesday.
This includes the launch of a new 15 -year -old zero coupon bonus, the first of its kind in Pakistan, which received a strong demand from investors and raised more than RS47 billion.
This new bonus does not pay interest every year. Instead, investors receive a global sum at the end of 15 years. This helps the government better reduce short -term payments and plan finances. The strong response shows that investors trust the economy and reforms of Pakistan.
This movement is part of the broader government strategy to reduce the risks of indebtedness, extend the debt reimbursement period and promote Islamic financial products and long term. The yields of other government bonds also decreased, indicating optimism in financial markets on the fall in inflation and lower interest rates in the future.
Pakistan’s debt is now becoming more stable. The average internal debt reimbursement period has increased from 2.7 years last year to 3.75 years, reducing pressure to pay loans quickly. In addition, more pension funds and insurance companies, instead of only banks, are now investing in government bonds. This helps spread the financial risk and deepen the local investor base.
The Minister of Finance, Senator Muhammad Aurengzeb, said: “This is a big step forward in making Pakistan’s financial system stronger and more resistant. We are introducing new intelligent ways to borrow that reduce the risk and provide investors more options. Our goal is to manage public debt responsible, promote Islamic finances and attract more long -term investments to support the economic growth of the country.”
The Ministry of Finance is also working on more products to allow common citizens to invest in government bonds, especially Islamic, to encourage savings and financial inclusion.
Despite global uncertainties, today’s auction shows that Pakistan’s economy is gaining confidence in investors and moving in the right direction.
With additional contribution of Irshad Ansari
