Pakistan seeks $10bn US Exchange Stabilisation Support Facility, Aurangzeb confirms
新闻台署名 来源：新华社、《黎明报》、《阿拉伯新闻》、阿纳多卢通讯社与《分钟镜报》。由 GSRRA 编辑部翻译并节选。
- Says negotiations ongoing with US
Finance Minister Muhammad Aurangzeb has confirmed that Pakistan has formally sought a $10 billion Exchange Stabilisation Support Facility from the United States, saying the initiative is aimed at strengthening foreign exchange stability and sending a positive signal to international capital markets rather than securing a conventional loan or credit line.
Talking to Business Recorder the minister confirmed the request while saying that negotiations were ongoing with US, however there is nothing final so far.
Later, talking to media about Pakistan’s financing strategy, Aurangzeb said Islamabad was also holding discussions regarding its eventual exit from existing financing arrangements and hoped to receive a reaction or views from either Exim Bank or the US Treasury by the end of September, as the government seeks to move away from repeated bilateral rollovers towards market-based financing.
Aurangzeb said the government’s “complete effort” was to move towards market-based maturities, with all current initiatives being pursued in that direction.
“Some will succeed, while with others there might be issues,” he said, adding that the government was nevertheless clear about its objective of reducing dependence on short-term bilateral rollover arrangements and moving towards longer-term market financing.
The minister said Pakistan remained grateful to its bilateral partners for the support extended over the past decade, particularly during the last three years, but stressed that the country’s financing strategy was now being recalibrated.
“Our effort and desire, Alhamdulillah, is that we have now achieved a rating status. We want to move at least towards a B+ rating,” Aurangzeb said.
He said the government was working closely with international credit rating agencies to improve Pakistan’s sovereign rating, which, according to him, had remained stuck since 2003-04.
The minister argued that an improved sovereign rating would open the door for Pakistan to raise financing from international capital markets at longer maturities of five, seven and even 10 years.
“If we move towards that side, we will have opportunities on the market side to extend maturities to five, seven or 10 years, so that you won’t have to ask this question as often,” he said, in an apparent reference to Pakistan’s recurring need to secure bilateral rollovers.
Clarifying the purpose of the proposed $10 billion US facility, the finance minister rejected the perception that it was simply another financing line.
“No, it’s not that. This is a signal to the market,” he said.
READ MORE: Economists see little chance of US granting USD10bn ESF request
According to Aurangzeb, the proposed facility is primarily intended to provide a signal about Pakistan’s currency and foreign exchange stability, which would, in turn, enhance the country’s ability to access international capital markets.
“This is not about a credit line or a loan or whatever. This is a signal about our currency stability, a signal about our foreign exchange stability, and that in turn also allows us that we can go to the market,” he said.
The finance minister said Pakistan had already begun positioning itself for renewed access to international debt markets and had appointed three arrangers as part of the process.
He pointed to Pakistan’s recent experience with different debt instruments, including a Eurobond, Islamic Sukuk and a dollar-settled rupee-linked bond, as evidence of the government’s efforts to rebuild market access.
“Our entire effort is to go into the market with five-, seven- or 10-year tenors and get credit,” Aurangzeb said.
Reference Link:- https://www.brecorder.com/news/40435571
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
