Daily Times

KARACHI: Pakistan is set to launch $500 million in Islamic bonds to raise money for its foreign exchange reserves, a senior official said on Wednesday, as a three-year International Monetary Fund (IMF) bailout package nears a close. The government has started looking at key markets for the Sukuk Bonds — a Sharia compliant instrument that offers profits instead of interest to its subscribers, he said. “We have begun a road show in Dubai on Wednesday and would go to London, Boston, and New York in the same leg,” said Waqar Masood Khan, finance secretary. The announcement came as a three-year, $6.6-billion bailout package from the IMF comes to an end. The lender announced in August that it would soon release the last instalment, worth $102 million. The country needs to tap the global capital market to maintain its foreign exchange reserves, which currently stand at $22.69 billion, enough to cover import bills for five months, he said. “The purpose behind the issuance of Sukuk Bonds is to meet our growing future demand of the foreign exchange,” he added. “After the IMF package ends and amid falling exports, the country needs to raise funds from different sources,” Rehan Ateeq, Head of Research at Shajar Capital said.