Development and improvementof debt capital market was the aim of medium term debt management strategy. Itgives extra roads to raising assets other than giving investment options to theinvestors that is why a much developed debt market is important for economicgrowth. The securities of government public debt such as T-bills, PIBs andGovernment Ijara Sukuk for exchanging at the stock trades are made accessible. Additional,administration is finding a way for giving a proficient and fluid optionalmarket for debt to the financial investors.
Debtcapital market developmentRegulationsrelated to sukukIt isrequired for issuance of sukuk to appoint shariah advisor and investment agentnotified by SECP Securities and Exchange Commission of Pakistan under section506 A of the companies ordinance, 1984. For the development of an effectivecapital market a board based and well regulated market must be need toed whichcould be greatly helpful. The aim of regulations providing for sukuk marketplatform for shariah complaint investment for the potential investors is tohelp firms raising funds from capital market.Debt managementdevelopment programSome of the plans that are in process for the development ofinternal debt market:Revised settlement model forgovernment securities trading is going to be introduced that will be a refinedform of current model which will not have regulatory changes and practicaldifficulties. It will help financial investors in trading at stock exchangesfor government securities;· Capital market will be integrated with nationalsavings scheme instruments.· Issued listing of debt securities regulationswill be formulated.
· Listed debt securities issued to the qualifiedinstitutional buyer retailed regulations will be reviewed.Issuance of convertiblesecurities related regulations;· Assets based securitization rule, 1999 forcompanies will be reviewed.· Enhance the anticipation from retail segment byutilizing stock exchanges for government debt securities and providing widerout reachThecontingent liabilities should be reported otherwise public debt may bemisleading and would be understated. The liabilities arise from past eventcalled contingent liabilities. They are conditional liabilities and may need anoutflow of resources associated with monetary returns. The government cannotwholly control the occurrence and non-occurrence of future uncertain events,while overall debt must be included contingent liabilities. Fiscal transparencyonly be ensure by the disclosure of essential component i.
e. information aboutguarantees. PSEs Public sector enterprise is issuedimplicit and explicit guarantees that are added in the contingent liabilitiesof Pakistan. Aggregated fresh guarantees of rupees 6.
7 billion or 0.2 % of GDPare issued in amid initial nine months of the financial year 2016 by thegovernment. In the end of March, 2015 rupees 600 billion was noted as theoutstanding stock of guarantees issued by government.