Maqbool Ur rehman


A well developed bond market is essential for economic development. Unfortunately, in Pakistan, the bond market lacks depth and breadth, despite considerable efforts made during the financial sector reforms in the early 90s. Federal Reserve ex chairman, Alan Greenspan remarked that the developed bond market acts as a spare tire for the economy. This paper will take stock of the developments in the financial markets over the last two decades. It will identify key issues impeding the development of the long term bond market in Pakistan and produce a set of policy recommendations for a well functioning and thriving bond market in Pakistan.


Financial markets, development, reforms, interest rates, maturities, liquidity, trading, cutoff yield, auction, secondary market.

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