Pakistan debt management strategy shifts to 5-10 year loans
Finance Minister Aurangzeb told the Senate that Pakistan's debt management strategy now favours five-to-ten-year loans after years of rolling domestic debt every three months.
Pakistan is moving from short-term borrowing to loans lasting five to ten years to cut refinancing risk, Finance Minister Muhammad Aurangzeb told the Senate finance committee.
Total public debt stood at Rs86.7 trillion in FY2026, up from Rs24.9 trillion in FY2018, Finance Secretary Imdadullah Bosal said.
Interest payments fell from Rs8.9 trillion in FY2024-25 to Rs6.9 trillion in FY2025-26, nearly Rs2 trillion less, and from 61% to 35% of revenue since FY2023-24.
Average domestic debt maturity rose from 2.7 years in June 2024 to 3.8 years in June 2026, with a FY2028 target of 4.2 years.
External debt servicing for FY2027 is put at $21.5 billion, with net payments estimated near $11 billion after rollovers and refinancing.