Pakistani government had offered Islamic bonds at 225

Dr Ashfaq Khan said the Pakistani government had offered Islamic bonds at 225 basis points above the London Inter-Bank Operations Rate (LIBOR) which is less than the rate of return offered on the Euro bonds in February last year. He said the investment banks, funds, central banks and Saudi companies have bought the Sukuk bonds.

WB team: The government’s economic team also disclosed that nine executive directors of the World Bank (WB) - posted in the United Kingdom, Japan, India, Netherlands, Switzerland and Algeria - will visit country soon to discuss future lending programmes, infrastructure projects funding and other economic issues with the government.

Dr Shah said the visit of senior WB officials was a good omen for Pakistan and would help improve the country’s image and muster their support for the future.

He said the upcoming visit of WB President James Wolfensohn, scheduled for next month, is not linked to the Baglihar issue. “We will discuss various issues with the WB president, but his visit is not specifically for Baglihar project,” he told reporters. He also said the WB, the Asian Development Bank and the Islamic Development Bank would remain the primary sources of lending for Pakistan and the offering of bonds in international and domestic markets every year would test the country’s credibility.

He said that the government was also considering offering Sukuk bonds in the local markets. He said foreign investors had appreciated Pakistan’s economic growth over the last few years.