Finance Minister Muhammad Aurangzeb announced that Pakistan intends to extend the maturity profile of its domestic and external debt portfolios to reduce refinancing and interest rate risks. This strategic move aims to strengthen debt sustainability, create fiscal space, and reinforce the country’s overall financial resilience.
Aurangzeb shared this outlook during his engagements in Washington D.C., where he is participating in the Annual Meetings of the International Monetary Fund and the World Bank Group. In a meeting with Othman Boukrami, CIO and Deputy CEO of TCX, and his team, the finance minister welcomed collaboration to support hedging mechanisms for local currency loans. He underscored that extending the debt maturity profile is critical to mitigating near-term rollover pressures and exposure to volatile interest rate movements.
Aurangzeb also briefed the delegation on Pakistan’s roadmap to re-enter international capital markets through the issuance of Panda Bonds, Eurobonds, and International Sukuk. He assured participants that the government would follow up on proposals shared with the Ministry to ensure smooth market access and diversification of financing channels.
In another high-level engagement, the finance minister met Jenny Chapman, UK Minister for International Development & Africa, where he expressed appreciation for the United Kingdom’s longstanding development partnership with Pakistan. He acknowledged the UK’s support in the development of the Digital Dashboard and stressed the importance of greater stakeholder consultation, improved project selection, and better visibility for off-budget initiatives.
Aurangzeb also held discussions with Hajar El Haddaoui, Director General of the Digital Cooperation Organisation (DCO). During the meeting, he reaffirmed Pakistan’s commitment to DCO’s mission of advancing inclusive digital growth and cross-border collaboration. He outlined Pakistan’s digital transformation agenda across three priority verticals: information technology, payment rails, and digitisation of all government payments. He further highlighted the importance of capacity building, skills development, and replicating proven digital solutions at scale. He welcomed DCO’s decision to expand its footprint in Pakistan as part of this collaborative effort.
Later, the finance minister participated in a roundtable discussion titled “Challenges and Opportunities for the Pakistani Economy through 2025 and Beyond,” organised by the Peterson Institute for International Economics. He briefed participants on the recent International Monetary Fund staff-level agreement, the credit ratings upgrades by major international agencies, and ongoing fiscal transformation at the Federal Board of Revenue (FBR).
Aurangzeb highlighted that the FBR’s transformation focuses on people, processes, and technology to enhance efficiency and transparency. He noted that this institutional strengthening aligns with broader fiscal management objectives, including lengthening debt maturities to reduce refinancing pressure, stabilizing interest costs, and supporting macroeconomic stability.
These strategic steps come at a critical time for Pakistan as the government aims to improve market confidence, manage fiscal risks, and create space for development spending. By shifting toward longer-term debt instruments and diversifying its financing base, Pakistan seeks to ensure more predictable cash flows and reduce its exposure to short-term shocks.
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