December 13, 2002	Friday	Shawwal 8, 1423

ISLAMABAD, Dec 12: The government is considering issuing new $200 million bonds early next year after having received better credit rating from international credit rating agencies.

Official sources said here on Thursday the Ministry of Finance has contacted a number of global investment banks to sell the new bonds on behalf of Pakistan.

“Most probably the new bonds will be issued either in dollar or euro,” said a senior official of the ministry.

However, he said this time the government would seek very attractive terms to issue new bonds. He said since Pakistan’s economic situation had improved in terms of foreign exchange reserves (over $9bn) and remittances $1.4bn in first four months of the current financial year, foreign investment banks were keen to issue new bonds on behalf of the government.

Iran has recently issued such bonds and got an attractive terms. “And we hope to also get attractive terms specially due to better long-term credit rating by Standard and Poor’s.

Earlier, the price of Pakistan EuroBonds had risen from $0.60 to $1.00 between December 1999 and May 7, 2002 — an increase of 67 per cent.

Pakistan government issued EuroBonds amounting to $620 million in November 1999 as part of debt restructuring agreed with the Paris Club. They carry an interest rate of 10pc and are repayable in four equal instalments in December this year.

Another official said since the maturity period of these bonds was nearing completion, it was good to see the improvement in their price.