Pakistan aims to extend debt maturity to reduce refinancing and interest rate risks

Pakistan is working to extend the maturity of its domestic and external debt portfolios to reduce refinancing pressures and exposure to interest rate risks, Finance Minister Muhammad Aurangzeb said. 

Speaking during a meeting with a delegation from The Currency Exchange Fund (TCX), led by Deputy CEO and Chief Investment Officer Othman Boukrami, the minister said the move reflects a shift toward longer-term borrowing to ensure predictable debt servicing and greater financial stability.

Discussions focused on debt management and local currency lending strategies. TCX provides long-term currency and interest rate hedging solutions to help developing economies access finance while minimizing exchange rate exposure.

Aurangzeb welcomed TCX’s support for local currency hedging mechanisms and outlined Pakistan’s plans to re-enter international capital markets through Panda Bonds, Eurobonds, and International Sukuk.

In a separate meeting with U.S. Congressman French Hill, Chairman of the House Financial Services Committee, Aurangzeb emphasized strengthening Pakistan–U.S. economic relations. 

Both sides discussed expanding cooperation in digital financial services, investment in emerging economic sectors, opportunities in Pakistan’s mineral resources, and collaboration in the information technology sector.