WASHINGTON: Pakistan is seeking to extend the maturity of its domestic and external debt portfolios to reduce refinancing and interest rate risks, Finance Minister Muhammad Aurangzeb said on Friday.
The minister’s remarks indicate a shift towards longer-term borrowing to reduce reliance on short-term debt, which typically requires more frequent refinancing at potentially higher market rates. In contrast, longer-term debt provides more predictable servicing costs, offering greater financial stability.
Aurangzeb made the statement during a meeting with a delegation from The Currency Exchange Fund (TCX), led by Deputy CEO and Chief Investment Officer Othman Boukrami.
The discussions focused on debt management and local currency lending strategies.
TCX offers long-term currency and interest rate hedging solutions to help businesses and households in developing economies access finance while limiting exposure to exchange rate fluctuations.
Aurangzeb welcomed TCX’s role in supporting local currency hedging mechanisms and shared Pakistan’s plans to re-engage with international capital markets through Panda Bonds, Eurobonds, and International Sukuk.
In a separate meeting with US Congressman French Hill, Chairman of the House Financial Services Committee, Mr Aurangzeb stressed the importance of enhancing economic ties between Pakistan and the US.
They discussed expanding cooperation in digital financial services, support for emerging sectors of the economy, potential collaboration in Pakistan’s mineral sector, and deeper engagement in information technology.
Published in Dawn, October 18th, 2025
