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Country’s forex reserves to hit $14b mark after IMF tranche of $1.1b, Sukuk bonds sale

Country’s forex reserves to hit $14b mark after IMF tranche of $1.1b, Sukuk bonds sale


ISLAMABAD: Pakistan’s foreign exchange reserves are estimated to cross $14.1bn after the proceeds of Sukuk and disbursement of $1.1bn by the International Monetary Fund (IMF), expected in the second week of current month.

Pakistan is set to cross the $15bln reserves barrier, thus becoming eligible to benefit from the concessionary development lending window of the World Bank – International Bank for Reconstruction and Development.

The proceeds of the Sukuk will go to the State Bank of Pakistan (SBP) and the rupee proceeds of an equivalent amount will be used for retirement of domestic debt, said a press statement issued by Finance Ministry here, adding there won’t be any increase in the overall debt.

After the long gap of nine years, Pakistan successfully returned to the international Islamic bond market with the issuance of US dollar-denominated Sukuk notes under Reg-S/144a format.

The sukuk were five times oversubscribed as there were offers worth 2.3 billion dollars but Pakistan picked only a billion dollar.

Finance Minister, Senator Mohammad Ishaq Dar also attended the Pak-Russia Inter-governmental Commission meeting in Moscow last week and had fruitful interaction with senior executives of prominent Russian companies at Moscow.

At the Pak-Russia IGC, both sides agreed on enhancing cooperation in trade, energy, agriculture, science, technology, defence and a host of other fields.

Both the sides signed a joint statement, reiterating cooperation between the two governments, as well as, encouraging private entrepreneurs to boost bilateral trade, commensurate with existing potential.

Meanwhile, Investors, businessmen and traders lauded the successful launch of Sukuk bond in the international market after a gap of nine years.

“The issuance of US Dollar denominated international Sukuk will help the country to boost its foreign exchange reserves and would help improve the overall economic situation of the country,” they said while commenting on the move.

Secretary General Overseas Investors Chamber of Commerce and Industry (OICCI) A.Abdul Aleem welcomed the launching of Sukuk Notes saying that this is a good news for Pakistan.

Chairman Pakistan India Business Council Noor Muhammad Kasuri appreciated the economic policies of the government for bringing improvements in the national economy.

Former President Islamabad Chamber of Commercia and Industry (ICCI) Zafar Baktawari said the Sukuk launch would benefit the country’s economy as Pakistan would get the amount without any conditionality or interest.