‘Govt pledged motorway to raise $2 billion Euro, Sukuk bonds’

‘Govt pledged motorway to raise $2 billion Euro, Sukuk bonds’

Motorway news

ISLAMABAD: The government has admitted that it had pledged
Islamabad-Lahore motorway to raise $2 billion through Euro bonds
and Sukuk bonds, Business92 reported Thursday (motorway news).

Secretary finance Dr. Waqar Masood Khan informed Senate standing
committee on finance, which was presided over by Senator Saleem
H. Mandviwala, that the current value of motorway was $2.5 billion,
therefore the government could raise $500 million more amount in the coming months.

About Sukuk bonds and Euro bonds, the secretary informed that in
2014 the government had issued Euro bonds worth of $1 billion on 8.8 percent interest rate.

Similarly, he said that in September, the government had issued $1
billion more Sukuk bonds on interest rate of 5.5 percent.

“The reason for the low mark up rate is that the country’s economy
had improved significantly during this period”, he added.

The secretary told the committee that the country’s external debt to
GDP ratio had come down from 35 per cent in 2013 to 20 percent in 2016.

He informed that by end June, 2016 the total debt of the country was $57.7
billion and the government had also repaid some of its debt later on.

Dr. Waqar Masood Khan informed the meeting that the total debt to GDP
ratio including internal borrowing, however rose to 64.9 per cent from 63 per cent in 2013.

Regarding China Pakistan Economic Corridor (CPEC), Dr. Waqar
Masood said that out of total $46 billion, $11.2 billion amount consisted
of soft terms loan while the rest of the amount would be owned by the private sector.

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