Exempt­ions aimed at attrac­ting capita­l from the intern­ationa­l financ­ial market­ISLAMABAD: The federal government has decided to waive income tax and duties for those investing in Eurobonds and Sukuk as per its medium-term note programme (MTN). Rs200b Sukuk issued to reduce circular debtThe waiver in income tax and duties on sovereign bonds is given to attract capital from the international financial market. As per the summary, previous governments had also exempted income tax on Eurobonds and Sukuk. The finance division is scheduled to form two consortiums comprising of five conventional banks and five financial institutions each for Eurobonds and Sukuk bonds respectively. Pakistan will need to obtain the International Monetary Fund’s (IMF) permission to float its government securities comprising, Eurobonds, Sukuk and three-year bonds for exporters.

Source: The Express Tribune October 27, 2019 18:56 UTC