A dollar-denominated diaspora bond, Pakistan Banao Certificate (PBC) is to be launched by the government on 31st January, 2019. The aim is to build the foreign exchange reserves by tapping in to the international savings of overseas Pakistanis.
According to Asad Umar, the Finance Minister the certificates will be of three and five year maturities at about 6.25% return and 6.75% return respectively. The transactions will be completed by four selected banks.
According to another official the PBC will be launched globally in collaboration with the government and the State Bank of Pakistan. The federal cabinet approved the rules governing the certificates. It is of utmost importance as it will be the first ever transaction that will be focusing specifically on overseas Pakistanis.
The official said, “It will be an open-ended transaction and its size would depend on the response from Pakistanis abroad.”
Adding, “Obviously we have some numbers in mind which could not be disclosed until the D-day.”
When asked about the$2.5-3 billion Eurobond or Islamic Sukuk launch the official said, “We don’t need to go for any other international capital market transaction this fiscal year.”
While mentioning the first $1bn tranche from UAE and the final $1bn instalment of Saudi Arabia’s $3bn commitment the official said, “More flows are expected over the next few days.” But he didn’t go in to the details of this.