Pakistan : Issues Related to the Government Securities Market and Government Debt Management
The government of Pakistan borrows in the domestic market through a range of instruments, and this market is a critical source of funding for both shorter-term cash management and longer-term deficit-financing. The government has taken actions over...
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2010/06/16505296/pakistan-issues-related-government-securities-market-government-debt-management http://hdl.handle.net/10986/12647 |
| Summary: | The government of Pakistan borrows in
the domestic market through a range of instruments, and this
market is a critical source of funding for both shorter-term
cash management and longer-term deficit-financing. The
government has taken actions over the past 18 months that
have enhanced the effectiveness of the market as a source of
funding, as well as its efficiency. These include the
movement toward more predictable, volume-based,
market-determined pricing of government securities. Taking
account of the dynamics of demand will be important as the
government continues to develop its medium-term debt
management strategy. Doing so will help identify potential
constraints that may impede the implementation of the chosen
strategy. Specific actions that the government is
recommended to take include: a) reducing the number of
tenors issued, b) consolidating the debt stock so as to
improve liquidity in individual bonds, c) reducing time
delays in auction processing, and d) developing and
investor-relations function, with readily accessible
information on the operation of the government securities market. |
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