ISLAMABAD: The government is moving to strengthen the Debt Management Office (DMO) by placing its overall strategic direction under a dedicated head tasked with steering borrowing, debt risks, market access, and long-term debt sustainability in line with the fiscal policy framework.
Finance Division stated that under the proposed framework, the Head of DMO will be responsible for aligning public debt management with macroeconomic stability and the government’s fiscal objectives, while overseeing implementation of the Medium-Term Debt Management Strategy (MTDS) and Annual Borrowing Plan (ABP) in accordance with the Fiscal Responsibility and Debt Limitation (FRDL) Act, 2025.
The head will exercise strategic oversight over both domestic and external borrowing programmes, including decisions relating to market access, diversification of funding sources and the choice of financing instruments based on cost and risk considerations.
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The government also intends to strengthen the debt risk management framework, with the DMO head responsible for strategic benchmarks covering interest-rate, refinancing and contingent-liability risks.
The proposed responsibilities indicate a broader shift towards a more structured and risk-based approach to public debt management, with emphasis on improving borrowing policies, processes and the overall efficiency of government financing.
The DMO will also be tasked with diversifying government funding sources through the introduction of a wider range of domestic and external debt instruments, potentially broadening financing options and reducing concentration risks.
The Head of DMO will be required to establish strong governance, accountability and internal control mechanisms within the office, including clear delegation of responsibilities, segregation of duties and compliance with applicable laws and government policies.
At the policy level, the official will lead high-level engagement with key stakeholders, including the Finance Secretary, State Bank of Pakistan (SBP), Economic Affairs Division (EAD), International Monetary Fund (IMF), development partners, investors and international credit rating agencies.
The framework also assigns significant importance to investor relations and market communication. The DMO head will provide strategic oversight to ensure consistent communication on the government’s debt management policies, financing plans and market position, aimed at strengthening investor confidence and credibility.
The office will also be responsible for ensuring timely submission of statutory debt publications and fiscal risk disclosures, besides providing inputs for the federal budget and debt sustainability assessments.
The proposed head will additionally oversee debt data-related matters and ensure compliance with reporting requirements, an area considered critical for improving transparency and strengthening the credibility of Pakistan’s debt statistics.
The government has also envisaged institutional development and capacity building of the DMO, with the head expected to promote international best practices and strengthen the office’s technical and operational capabilities.
The framework further requires expertise in risk-based debt management, strategic benchmarks and risk indicators, along with familiarity with financial information and analytical platforms such as Bloomberg, Reuters and Excel.
The Head of DMO will also advise the government on strategic debt-related policy matters and perform other functions assigned by the competent authorities under the FRDL Act, 2025.
Copyright Business Recorder, 2026
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