World Bank2013-03-122013-03-122010-06-25https://hdl.handle.net/10986/12647The government of Pakistan borrows in the domestic market through a range of instruments, and this market is a critical source of funding for both shorter-term cash management and longer-term deficit-financing. The government has taken actions over the past 18 months that have enhanced the effectiveness of the market as a source of funding, as well as its efficiency. These include the movement toward more predictable, volume-based, market-determined pricing of government securities. Taking account of the dynamics of demand will be important as the government continues to develop its medium-term debt management strategy. Doing so will help identify potential constraints that may impede the implementation of the chosen strategy. Specific actions that the government is recommended to take include: a) reducing the number of tenors issued, b) consolidating the debt stock so as to improve liquidity in individual bonds, c) reducing time delays in auction processing, and d) developing and investor-relations function, with readily accessible information on the operation of the government securities market.en-USCC BY 3.0 IGOACTIVE TRADINGASSET ALLOCATIONASSET ALLOCATION STRATEGIESASSET MANAGEMENTASSET MANAGEMENT INDUSTRYASSET PORTFOLIOSASSETSAUCTIONAUCTIONSBANKING MARKETBASIS POINTSBENCHMARKBENCHMARKSBIDBIDDINGBIDSBONDBOND INDICESBUY-BACKSCAPITAL ACCOUNTCASH FLOWCASH MANAGEMENTCOMMERCIAL BANKSCOMMODITIESCOMPULSORY INVESTMENTCONFIDENTIALITYCONTINGENT LIABILITIESCONTRACTUAL SAVINGSCONTRACTUAL SAVINGS INSTITUTIONSCOUPONSCREDIBILITYCURRENCYDEBT COMPOSITIONDEBT MANAGEMENTDEBT MANAGEMENT POLICYDEBT MARKET DEVELOPMENTDEBT POLICYDEBT STOCKDEPOSITDEPOSITSDISSEMINATION OF INFORMATIONDIVERSIFIED PORTFOLIOSDOMESTIC DEBTDOMESTIC DEBT MARKETDOMESTIC MARKETEXCESS LIQUIDITYEXCHANGE RATEEXCHANGE RATESEXPOSUREFINANCIAL MARKETFISCAL POLICYFOREIGN BANKSFULL DISCLOSUREGOVERNMENT DEBTGOVERNMENT FUNDINGGOVERNMENT SECURITIESGOVERNMENT SECURITIES MARKETHOLDINGSINCOMEINCOME FROM GOVERNMENT SECURITIESINDIVIDUAL BONDSINFLATIONINSTITUTIONAL INVESTORSINSTRUMENTINSURANCEINSURANCE COMPANIESINTEREST RATESINTEREST-RATE RISKINTERNATIONAL RESERVESINVENTORYINVESTMENT PERFORMANCEINVESTMENT REQUIREMENTSINVESTOR PREFERENCESISLAMIC BANKISLAMIC BANKINGISLAMIC BANKSISLAMIC SECURITIESISSUANCEISSUANCE OF GOVERNMENT SECURITIESLIABILITYLIABILITY MANAGEMENTLIFE INSURANCELIFE INSURANCE COMPANIESLIQUIDITYLIQUIDITY MANAGEMENTLOCAL BANKSLOCAL MARKETLONG-TERM CAPITALMACROECONOMIC ENVIRONMENTMACROECONOMIC INSTABILITYMANDATESMARKET CONDITIONSMARKET DEVELOPMENTMARKET FRAGMENTATIONMARKET INFORMATIONMARKET INSTRUMENTSMARKET PARTICIPANTSMARKET PLAYERSMARKET SEGMENTSMARKET SIZEMARKET YIELDSMATURITIESMATURITYMEDIUM-TERM SECURITIESMONETARY POLICIESMONETARY POLICYMUTUAL FUNDSNATIONAL BANKNATIONAL INVESTMENTNATIONAL INVESTMENT TRUSTNATIONAL SAVINGSOUTSTANDING DEBTPENSIONPENSION FUNDSPORTFOLIOPORTFOLIO CHOICEPORTFOLIO MANAGEMENTPORTFOLIOSPRICE DISCOVERYPRIMARY DEALERPRIMARY DEALER SYSTEMPRIMARY DEALERSPRIMARY MARKETPROSPECTUSPUBLIC DEBTPUBLIC DEBT MANAGEMENTREDEMPTIONREDEMPTIONSRELEVANT MARKETREPOREPO TRANSACTIONSRESERVESRETAILRETAIL DEBTRETAIL DEPOSITRISK FACTORSRISK MANAGEMENTRISK PARAMETERSSALESSAVINGS BONDSSECONDARY MARKETSECONDARY MARKET TRADINGSECONDARY MARKETSSECONDARY TRADINGSECURITIES ISSUANCESHORT-TERM PAPERSHORT-TERM SECURITIESSOVEREIGN RISKSPREADSTATE BANKSTATE BANK OF PAKISTANSTATUTORY LIQUIDITYSTOCK EXCHANGESTOCKSSUBSIDIARYSUKUKSUSTAINABILITY ANALYSISTAX LIABILITYTAXATIONTRADESTRADING ACTIVITYTRADING VOLUMESTRANSPARENCYTREASURYTREASURY BILLSTURNOVERTURNOVER RATIOTURNOVER RATIOSUNDERLYING ASSETVOLATILITYWHOLESALE SECURITIESWITHHOLDING TAXYIELD CURVEWorld Bank10.1596/12647