ISLAMABAD, Sept 21: Through international rate hedging the government is trying to minimize the risk for Islamic Bonds (Sukuk) which is currently based on floating rate of London Inter Bank Offer Rate (LIBOR).

“We are trying to move to a fix rate and in this connection several international and domestic banks are making presentations in the Finance Ministry,” Dr Ashfaque Hasan Khan Adviser to the Ministry told APP in an interview here on Wednesday.

The adviser said that banks are offering different products of “hedging” and “We will decide which suits us well and cost-effective”. “We want to complete this process soon,” he remarked.

Dr Khan said the ministry is also exploring the possibilities of introducing Pakistan in the international equity market through the General Depository Receipts (GDR) or through American Depository receipts (ADR).

Pakistan, he said, had already entered the international capital market through successful launching of Eurobonds worth $500 million and Islamic Bonds (Sukuk) worth $600 million.

He said that international capital market is well aware of Pakistan’s improving credit story.

“With continuing improvements in Pakistan’s economic fundamentals the spread pertaining to these two bonds have already tightened in the secondary market,” he remarked.

Dr Ashfaque said it was time that Pakistan should enter into international equity market by listing “blue chips” in the international stock exchanges.—APP