BoB to formally approach govt on protecting Pula Fund

Set up in 1994 and managed by the BoB and global asset managers, the Pula Fund is designed to act as a fiscal buffer and nest egg for future generations who will live in an era without strong diamond revenues. 

However, the government often dips into the Pula Fund to fund various needs such as the Economic Stimulus Plan and budget shortfalls, while frequent withdrawals are also made to support the country’s import bill. The Pula Fund is part of the foreign reserves, representing long term assets, while other components cater for short and medium-term needs.