Pakistan seeks investment from overseas citizens with new bond
The government is hoping overseas citizens will invest dollars in Pakistan’s ‘bright future’ (ASIF HASSAN)
Islamabad (AFP) – Pakistan has launched a new investment certificate for overseas citizens, aimed at easing the country’s balance of payments crisis, Prime Minister Imran Khan announced Thursday.
The scheme, called the “Make Pakistan” Certificate (PBC), is a sovereign US dollar-denominated bond with a minimum investment of $5,000.
“The purpose of launching the bond is to steer the country out of a very difficult period of its history by improving balance of payments, reducing budget and trade deficits,” Khan said at a ceremony in Islamabad.
“I urge overseas Pakistanis to buy these certificates and invest in Pakistan and its bright future,” he added.
The PBCs, which have no maximum investment amount, are available in three and five-year maturities, yielding 6.25 percent and 6.75 percent, respectively, according to the government.
Forecasts by the IMF and World Bank suggest the Pakistani economy is likely to grow between 4.0 and 4.5 percent for the fiscal year ending June 2019, compared to 5.8 percent growth in the last fiscal year.
Khan has launched a highly publicised austerity drive since being sworn in, including auctioning off government-owned luxury vehicles and buffaloes, in addition to seeking loans from “friendly countries” and making overtures to the IMF.
United Arab Emirates, Pakistan’s largest trading partner in the Middle East and a major investment sources, recently offered $3 billion to support Pakistan’s battered economy.
Islamabad also secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Khan’s visit to the kingdom in October.
It has also received billions of dollars in Chinese loans to finance ambitious infrastructure projects.
A team from the International Monetary Fund visited Pakistan in November to discuss a possible bailout with officials but talks ended without agreement.
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