Development and improvement
of debt capital market was the aim of medium term debt management strategy. It
gives extra roads to raising assets other than giving investment options to the
investors that is why a much developed debt market is important for economic
growth. The securities of government public debt such as T-bills, PIBs and
Government Ijara Sukuk for exchanging at the stock trades are made accessible. Additional,
administration is finding a way for giving a proficient and fluid optional
market for debt to the financial investors.
capital market development
related to sukuk
required for issuance of sukuk to appoint shariah advisor and investment agent
notified by SECP Securities and Exchange Commission of Pakistan under section
506 A of the companies ordinance, 1984. For the development of an effective
capital market a board based and well regulated market must be need toed which
could be greatly helpful. The aim of regulations providing for sukuk market
platform for shariah complaint investment for the potential investors is to
help firms raising funds from capital market.
Some of the plans that are in process for the development of
internal debt market:
Revised settlement model for
government securities trading is going to be introduced that will be a refined
form of current model which will not have regulatory changes and practical
difficulties. It will help financial investors in trading at stock exchanges
for government securities;
Capital market will be integrated with national
savings scheme instruments.
Issued listing of debt securities regulations
will be formulated.
Listed debt securities issued to the qualified
institutional buyer retailed regulations will be reviewed.
Issuance of convertible
securities related regulations;
Assets based securitization rule, 1999 for
companies will be reviewed.
Enhance the anticipation from retail segment by
utilizing stock exchanges for government debt securities and providing wider
contingent liabilities should be reported otherwise public debt may be
misleading and would be understated. The liabilities arise from past event
called contingent liabilities. They are conditional liabilities and may need an
outflow of resources associated with monetary returns. The government cannot
wholly control the occurrence and non-occurrence of future uncertain events,
while overall debt must be included contingent liabilities. Fiscal transparency
only be ensure by the disclosure of essential component i.e. information about
PSEs Public sector enterprise is issued
implicit and explicit guarantees that are added in the contingent liabilities
of Pakistan. Aggregated fresh guarantees of rupees 6.7 billion or 0.2 % of GDP
are issued in amid initial nine months of the financial year 2016 by the
government. In the end of March, 2015 rupees 600 billion was noted as the
outstanding stock of guarantees issued by government.