With unfavorable circumstances, Dr Salman Shah warns against Eurobonds
- By Zohaib Kazmi -
- Apr 02, 2014
ISLAMABAD: Former Advisor to Prime Minister on Finance and Economic Affairs, Dr Salman Shah has suggested the government to wait for an appropriate time for the launching of Eurobonds.
While talking to ARY News, Dr Salman Shah said the circumstances of the country are not suitable for tapping the international bond market with worse law and order situation, energy crisis and current Credit Rating (CR).
He urged government to wait for an appropriate time or else be ready to pay a higher price.
“Euro Bonds must be launched but on a suitable time because if government failed to achieve desirable results from the auction of Euro bonds, it will increase Pakistan's dependency on International Monetary Fund (IMF)", said Dr Shah.
He said previous federal government of Pakistan Peoples’ Party (PPP) tried for the same but wasn’t able to succeed.
Dr Salman Shah has recommended government to decrease budget deficit, overcome energy crisis and increase foreign exchange reserves on priority basis then think about the launch of Eurobonds.
Government’s plan regarding Eurobonds
Earlier, Federal Finance Minister Ishaq Dar hinted that government would complete all three road shows for Eurobonds by mid-April, after which Pakistan will launch Eurobonds worth $500 million to improve foreign reserves in the country.
According to Ishaq Dar, the Eurobonds will be launched for the first time in seven years with an indicative price of 6.5 per cent.