Pakistan plans to refinance some of its short-term external debt into longer maturities over the next two to three years to reduce rollover risks, Finance Minister Muhammad Aurangzeb told Bloomberg News on Monday. He said the government wants to keep total external debt, close to $100 billion, broadly unchanged, and to treat the shift mostly as replacement, diversification and longer maturities.
On Bloomberg: The China Show, Aurangzeb said this year it is not a question of absolutely needing to cover the external financing gap. Over the next two to three years, he said, the aim is to see if some short-term external debt can be refinanced into longer tenors so Pakistan does not have to keep taking that rollover risk.
Shifting from short-term rollovers to long tenors
Under the proposed debt management roadmap, the finance ministry will replace maturing short-term obligations with longer-dated financing instruments rather than taking on additional net borrowing. Aurangzeb highlighted that managing Pakistan external debt effectively requires focusing on replacement rates, diversifying funding channels, and stretching average maturities to secure fiscal breathing space.
The government is not rushing to issue conventional sovereign bonds in international capital markets during the ongoing fiscal year. Instead, authorities have issued mandates for Islamic Sukuk bonds—asset-backed Islamic financial certificates—and are introducing dollar-settled, rupee-denominated bonds to test global investor appetite following encouraging early inquiries.
New financing instruments and global engagements
Officials are also preparing requests for proposals for the remaining Panda bonds in the Chinese market and, for the first time, will look at tokenising existing Eurobonds. Aurangzeb said those steps are meant to diversify how Pakistan raises money abroad.
He is leading Pakistan's delegation at the World Bank Group and IMF annual meetings in Bangkok, scheduled for 12 to 18 October. Business Recorder reported that the programme includes more than 60 meetings with financial institutions, investors, banks and credit rating agencies, as Pakistan talks about a shift toward investment- and export-led growth.
Aasan alfaaz mein
Maliyat ke wazir Muhammad Aurangzeb ne Bloomberg ko bataya ke hukumat aglay do se teen saal mein mukhtasir muddat ke kuch bairooni qarzon ki muddat barhana chahti hai, taake rollover ka khatra kam ho. Unhon ne kaha kul bairooni qarza taqreeban $100 billion ke qareeb hi rahega aur us ka hajam nahi barhega. Maqsad purane qarzon ko lambi muddat walay tareeqon se badalna hai.
