Govt Advised to Launch CPEC Bonds for More Loans

After the successful auction of Sukuk and Euro bonds, The United Business Group (UBG) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has suggested the government to launch China Pakistan Economic Corridor (CPEC) bonds to overcome financial difficulties.

Lauding the government for the successful auction of bonds worth $2.5 billion instead of the International Monetary Fund (IMF) program, the UBG said that the issuance of these bonds would help government. However, these bonds would not resolve the financial difficulties on the back of falling exports and increasing imports, said a top officials of the group in a statement.

“The government needed at least ten billion dollars to tackle the situation for which it could consider issuing CPEC bonds,” Naseem ur Rehman, a central leader of the UBG said.

CPEC is a great project and therefore many individuals and companies would prefer to invest in CPEC bonds, he added.

He was of the view that the successful move spoke volumes about the increasing confidence of the foreign investors in the Pakistani economy.

The member said that railways infrastructure was also being improved under the economic corridor, therefore, the government could also issue railway bonds and offer tax breaks to lure investors.

He said, the decision of the government to allow IMF to monitor Pakistani economy was laudable as it would help boost the confidence of the investors.