PESHAWAR – The Khyber Pakhtunkhwa government on Friday decided to issue bonds through the stock exchange to enhance financial resources.
KP Finance Advisor Muzammil Aslam said that they planned to issue education bonds in the stock exchange or capital market.
The proceeds from the education bonds would be used to clear pension liabilities of universities. This would not be a large-scale project but rather a pilot initiative worth 3 to 4 billion rupees or even less.
The finance advisor explained that they would first create awareness about the project, hire consultants for its execution and conduct testing. He described it as a unique approach and expressed hope for tackling challenges as they arise.
He further added that after this pilot project, the province would contribute to larger developmental projects, creating a new avenue for funding. The efforts are already underway in this regard including roadshows in Karachi and an event in Lahore. An additional event would be held in Islamabad on December 16 to highlight various projects.
Muzammil Aslam also said that until now, KP’s developmental works relied heavily on foreign loans and donors.
However, the loans took considerable time to secure and involved risks related to exchange rates. To address the said issues, the government now intended to increase its reliance on local donors.
