By Staff Reporter
ISLAMABAD: The caretaker cabinet on Monday approved amendments to the existing rules for government securities, aiming to enhance the efficiency and flexibility of the market and attract more investors.
The cabinet approved a summary presented by the Ministry of Finance, “which proposed changes to the Government of Pakistan Market Treasury Bills 1998 and Government of Pakistan Ijara Sukuk Rules 2008”, a statement from the ministry said.
“The amendments are intended to respond to the increasing demands of the financial market in general and Islamic financial institutions in particular for introducing new instruments, the statement said.”
The changes will also enable the government to launch its securities through other capital market institutions, including the Pakistan Stock Exchange, Central Depository Company, and National Clearing Company Pakistan Limited, which will bring more transparency and accessibility for investors, aligning with global best practices.
The implementation of these rules will make the participation in government securities auctions and issuance simpler and expand the investor base, the ministry said.
It is also expected that these amendments will help in reducing the cost of borrowing as greater diversification will significantly enhance the subscription in government securities.
The Ministry of Finance, in collaboration with relevant stakeholders, will ensure the effective implementation of these amendments. The changes are expected to have a positive impact on Pakistan’s financial markets and contribute to the overall economic development of the country.
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