Summary The federal government plans to borrow Rs7.02 trillion during the current fiscal year to finance the budget deficit and has finalised a three-year debt strategy for 2026-28.
ISLAMABAD (Dunya News) — The federal government has planned to borrow Rs7.02 trillion during the current fiscal year to finance the budget deficit, while the Ministry of Finance has issued its three-year debt management strategy for 2026 to 2028.
Under the borrowing plan, the government will raise Rs6.046 trillion from domestic sources and Rs813 billion from external sources, according to the Ministry of Finance.
The government has also finalised its Medium-Term Debt Management Strategy for 2026-28, aimed at managing borrowing needs while extending the maturity profile of government debt. The strategy focuses on increasing net issuance of Pakistan Investment Bonds (PIBs), particularly fixed-rate and zero-coupon bonds, while limiting short-term and floating-rate borrowing.
According to the ministry’s report, the government is estimated to receive Rs161 billion through privatisation during the current fiscal year. Within domestic borrowing, the government plans net borrowing of Rs4.58 trillion through Pakistan Investment Bonds, while Rs3.785 trillion is planned through Sukuk and other Islamic financing instruments.
The government’s total external borrowing during the fiscal year is estimated at $13.378 billion, while repayments are expected to amount to $10.574 billion. This would leave net external financing of around $2.804 billion.
The government has set a target of issuing $2 billion in bonds during the current fiscal year, while a $3 billion Eurobond has already been issued.
Under the three-year debt strategy, the government will prioritise long-term fixed-rate and zero-coupon bonds, while keeping short-term and floating-rate borrowing limited. The Finance Ministry’s strategy also focuses on extending debt maturities and reducing exposure to interest-rate and currency risks.
The government will give preference to concessional long-term financing, Shariah-compliant bonds and greater participation by investors other than banks.
According to the Ministry of Finance, implementation of the debt strategy will remain subject to global economic conditions, geopolitical developments and fiscal discipline.
