Pakistan Studies

THE DEVELOPMENT OF DEBT SECURITIES MARKET

COUNTRY EXPERIENCE OF PAKISTAN

PRESENTED BY

MS. UZMA KHALIL

STATE BANK OF PAKISTAN

SEACEN-WORLD BANK SEMINAR ON STRENGTHENING THE DEVELOPMENT OF DEBT SECURITES MARKET

JUNE 08-JUNE 10, 2004

Introduction

The bond market in Pakistan is comprised of debt and debt like securities issued by a) the Government; b) statutory corporations; and c) corporate entities. As of June 30th, 2003, the size of the Pakistan’s bond market was approximately Rs. 1,892 billion equivalent to USD 33billion. The bond market is clearly dominated by the Government, which accounted for Rs.1,852 billion (or 98%) of total bonds outstanding as of June 30th, 2003 followed by corporate entities Rs. 25 billion (1.32%) and statutory bodies Rs.15billion (0.79%).
The following table shows the outstanding position of bond market during the period June 30th, 2003 as compared to June 30th, 1996.
|Debt Instruments |FY2003 |FY1996 |
| |Amt Rs. in mn |USD in mn |Amt Rs. in mn |USD in mn |
|Government Debt |1,852,391 |31,938 |901,402 |15,541 |
|Permanent Debt |427,908 | |223,788 | |
|Floating Debt |516,268 | |421,742 | |
|Un funded Debt |908,215 | |252,902 | |
|Corporate Debt |25,000 |431.03