Economists saying about Eurobonds
Pakistan by issuing bonds to two billion euro, economists say that the interest rate on the bonds is not based on reality and a time when Europe and the U.S. banks have very low interest rate regime in Pakistan Eurobonds issued by overseas investors who have the opportunity for an easy profit. Pakistan over all have seven billion dollar debt.
European and U.S. banks have reduced interest rates and Eurobonds issued in the context of Pakistan over the interest rates. It is Pakistan’s politicians charged that the billions of dollars deposited in banks in foreign countries where there is a low rate of interest nowadays.it will buy bonds abroad and most likely is that the Pakistani politicians, including those who have bank accounts in foreign countries are buying their bonds.
Pakistan Pervez Tahir, former chief economist said the euro bond would increase Pakistan’s external debt will increase the economic burden on the country.
Interest rate on Eurobond
Pakistan recall that two billion euros of bonds on which the interest rate is 7.25% and 8.25%. Pervez Tahir said that the government wants to prove it can be trusted on the economy of Pakistan in the international market and dignity exists. He said Pakistan’s reputation as the country’s tax system can be improved.
He said that Pakistan was facing a decline in foreign exchange reserves will increase so quickly, but the payments will continue to be low foreign exchange reserves will start again and the issuance of Eurobonds in the economy there will be no meaningful or substantial additions. He also said that the cost of borrowing and inflation will increase the burden on the shoulders of the people will be.