Govt all set to facilitate investors: Dr Hafeez

KARACHI: Advisor to Prime Minister on Finance & Revenue, Dr Abdul Hafeez Shaikh has said that for the first time the government has raised Rs200 billion through Sukuk at less than KIBOR rate, through competitive book building at PSX, saving Rs18 billion over 10 years of debt servicing.
Dr Abdul Hafeez Shaikh said this while addressing a gong ceremony held by Pakistan Stock Exchange (PSX) on Monday to mark the successful book building and listing of Rs200 billion Pakistan Energy Sukuk-II (PES-II) of Power Holding Limited (PHL).
Shaikh congratulated all the market participants and transaction leads who made the listing of Pakistan Energy Sukuk II a success. He said, “It was an excellent team effort by the Ministry of Finance Debt Office, Securities & Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP) and PSX.”
He also appreciated the strong performance of the exchange and congratulated PSX on being named the best performing market in Asia. This is particularly creditable considering the recent challenges faced by Pakistan and Karachi, he said.
He said the government is determined to provide a conducive environment to investors in the country. He said that no country can progress without trade and investment with other countries.
Shaikh said subsidy is being provided to 90 percent consumers of gas and at utility stores to provide relief to the general public. The advisor on finance asked the business community to find new markets for their products and utilize new instruments for the promotion of businesses. He said the business community should contact him in case the sales tax refund is not paid within 72 hours.
Speaking on the occasion, CEO PSX Farrukh Khan said that competitive book building preceding the listing is a watershed event in itself not only for the stock exchange and the capital market of the country, but also for the economy in general. He added, “It sets a precedence for other debt listings to engage in the state of the art competitive book building managed by the stock exchange, which will enable the government of Pakistan and private companies to raise capital at the most competitive cost, while providing attractive investment opportunities to investors.
Earlier, the Advisor on Finance opened the PSX trading session.
Also present were Chairman SECP Aamir Khan, Governor SBP Dr Reza Baqir, Chairman PSX Sulaiman S Mehdi, members of the PSX Board, businessmen, and senior management and other staff members of banks, institutions and aforementioned organisations.
Power Holding Limited’s Pakistan Energy Sukuk II is a Shariah compliant debt instrument which was issued through the competitive book building process managed by the PSX.
Later, talking to the media at the PSX, Hafeez Shaikh said that there is a need to work on the infrastructure of Karachi for the betterment of the economy. He said that things are improving after the provincial and federal government started working together. – TLTP