Pakistan unveils IMF-linked plan for local currency bond market development

The government has announced a plan to allow the general public to trade government securities, like treasury bills and bonds, through the stock market. Dawn reported this move is part of efforts to meet conditions under the ongoing International Monetary Fund programme, which is currently under review by a visiting IMF staff mission.

The announcement of a strategic action plan for the Local Currency Bond Market followed a meeting between Finance Minister Muhammad Aurangzeb and the IMF mission. The mission, led by Iva Petrova, also held discussions on the power sector, privatisation, petroleum-sector issues, tax authority reforms, and the automobile sector.

According to Dawn, the finance minister briefed the mission on recent macroeconomic indicators, credit rating improvements, and the investment climate. This outlook is described as challenging due to the prolonged Iran conflict and its impact on revenues. A successful conclusion of the talks would entitle Pakistan to a disbursement of around $1.2 billion.