KARACHI: The Pakistan Stock Exchange (PSX), in collaboration with the Ministry of Finance (MoF), on Friday held an investor briefing session to update market participants on Pakistan’s debt management strategy, sovereign Sukuk programme, secondary debt market development and ongoing fiscal reforms.
Addressing the session, PSX Managing Director and Chief Executive Officer Farrukh H. Sabzwari said the stock exchange continued to play an important role in the government’s debt issuance programme, highlighting the successful launch of the government’s inaugural hybrid Sukuk.
He said government Sukuk issuance reached Rs3.5 trillion during FY2026, compared with Rs2.2 trillion in FY2025, while overall capital market-based debt issuance increased to Rs6.4 trillion. He added that average daily traded value in the debt market rose to Rs3.9 billion from Rs2 billion a year earlier.
Sabzwari said secondary market participation had expanded, with 11 banks and three asset management companies receiving direct market access, while 51 Bills and Bonds (BNB)-enabled brokers were facilitating trading in government Sukuk.
Finance Minister’s Adviser Khurram Shehzad said the government’s fiscal strategy was based on relief, growth and fiscal responsibility.
He said exporters continued to receive refinance facilities at 4.5 percent, compared with prevailing market rates of around 12 percent, while reductions in super tax had been introduced for small and medium enterprises (SMEs).
Shehzad said Pakistan’s debt-to-GDP ratio had declined to 68.5 percent from 75.2 percent in 2023, while the government had retired Rs4.7 trillion worth of expensive debt over the past two years, including Rs2.2 trillion during the current year.
He added that debt growth had slowed to 5 percent, the lowest level in 15 years, while the share of government revenues consumed by debt servicing had declined from 61 percent to 40 percent.
On the privatisation programme, he said the government planned to launch the privatisation of three electricity distribution companies by the end of the year, with additional transactions in the energy, airport and banking sectors also in the pipeline.
Speaking at the event, Adviser on Debt to the Finance Minister Omer Khan said debt sustainability remained the central objective of Pakistan’s debt management strategy.
He said the average time to maturity (ATM) of public debt had increased to 3.9 years from 2.6 years three years ago, while Roshan Digital Account (RDA) inflows had risen by around USD 300 million per month.
Khan said Pakistan had successfully returned to international capital markets through Eurobond and Panda bond issuances and was also preparing to introduce tokenisation of sovereign debt.
He added that liability management operations (LMOs) reached Rs2.923 trillion during FY2026, including Rs1.927 trillion through State Bank of Pakistan (SBP) instruments, while external debt repayments totaled USD 1.8 billion during the period.
Director Domestic Debt at the Ministry of Finance, Khaliq Uz Zaman, said investor engagement remained a key component of the government’s debt management strategy and had helped shape new conventional and Shariah-compliant debt instruments.
He said gross sovereign Sukuk issuance reached a record Rs3 trillion during FY2026 through a hybrid issuance structure, supported by retail participation via JazzCash, InvestPak, Central Directorate of National Savings (CDNS) and Roshan Digital Accounts.
He added that the weighted average cost of government borrowing remained contained at 11.2 percent, below the policy rate, while the average time to maturity increased to 3.9 years and the average time to refixing improved to 1.3 years.
According to the presentation, trading volumes in conventional government securities increased 25 percent year-on-year to Rs159,373, while Sukuk trading at the PSX surged 275 percent to Rs973.
Khaliq Uz Zaman said the government also planned to launch Pakistan’s first short-term sovereign Sukuk programme, targeting Rs400-500 billion through three-month and six-month instruments to broaden the investor base and complete the sovereign Sukuk yield curve.
The session, held at the Dr. Shamshad Akhtar Auditorium at the PSX, was attended by senior officials of the Ministry of Finance, PSX management, asset managers, banks, brokerage houses and other stakeholders.
Copyright Business Recorder, 2026
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