Govt to launch Euro, Sukuk bonds

ISLAMABAD: In order to shore up dwindling foreign currency reserves, the PTI-led government has decided launching both Euro and Sukuk bonds next month for raising $1.5 billion.

It is yet to see how the government will be able to generate desired interest on upcoming Pakistani papers when some opposition parties are planning for long march by end of the ongoing month. The increasing political turmoil might increase woes for the government on economic front in weeks and months ahead.

The foreign currency reserves nosedived by $724 million during the week ended on September 27, 2019 on account of payment of around $700 million commercial loan to Chinese bank.

Top official sources confirmed to The News on Thursday that the Chinese bank showed its willingness to rollover $700 million loan but its procedural requirement would take a few weeks period so it was expected that the dwindled foreign currency reserves would be again shown as part of the foreign currency reserves after pause of a few weeks.

According to State Bank of Pakistan (SBP) data released on Thursday stating that the total liquid foreign reserves held by the country stood at $15.003 billion on September 27, 2019. During the week ending on September 27, 2019, the SBP’s reserves decreased by $724 million to $7.741 billion.