The commonly held belief that the Central government pension bill has the potential to reach an unsustainable level does not appear to be based on any realistic assessment of such liabilities in the future years. The future pension liabilities of the Central Government would be primarily driven...

This paper argues that with the recent economic reforms, an efficient and active debt market, particularly in long-term private debt instruments, is essential for the country to realize the full benefits of the reform process and to achieve its potential.