ISLAMABAD: The federal government and the Pakistan Stock Exchange (PSX) have declared FY2026 a landmark year for Pakistan’s debt market, highlighting record Sukuk issuance, stronger capital market financing, improved debt indicators, and plans to introduce blockchain-based government debt instruments.
The developments were shared during a joint investor briefing organized by the Pakistan Stock Exchange (PSX) in collaboration with the Ministry of Finance, where officials outlined the country’s debt management strategy and fiscal reforms.
PSX Managing Director and CEO Farrukh H. Sabzwari said the government has raised Rs. 6.4 trillion through the capital market. He added that the average daily traded volume increased to Rs. 3.9 billion during FY2026, up from Rs. 2 billion a year earlier, while participation in the secondary market continued to expand.
Finance Ministry Advisor Khurram Shehzad said Pakistan’s debt-to-GDP ratio improved from 75.2% in 2023 to 68.5%, while the government retired Rs. 4.7 trillion in expensive debt over the past two years, including Rs. 2.2 trillionduring FY2026.
He also noted that debt growth slowed to 5%, the lowest level in 15 years, while the share of government revenue spent on debt servicing declined from 61% to 40%.
Shehzad said the government is also moving ahead with its privatization agenda, with three power distribution companies expected to be offered by the end of the year, alongside planned privatizations in the energy, airport, and banking sectors.
Advisor on Debt Omer Khan said Pakistan has increased the average maturity of its debt portfolio from 2.6 years to 3.9 years over the past three years. He added that Roshan Digital Account inflows are averaging around $300 million per month, while Pakistan has re-entered international capital markets through Eurobond and Panda bond issuances.
Khan further announced plans to introduce tokenized sovereign debt, making Pakistan among the few countries exploring blockchain technology for government borrowing. He added that external debt repayments totaled $1.8 billionduring FY2026, while liability management operations reached Rs. 2.923 trillion, a 62.7% year-on-year increase.
Meanwhile, Director of Domestic Debt Khaliq Uz Zaman said gross Sukuk issuance reached a record Rs. 3 trillionduring FY2026 the highest ever in a single fiscal year.
He added that the government plans to launch its first short-term Sukuk program worth Rs. 400–500 billion in three- and six-month tenors to broaden the investor base and further develop Pakistan’s domestic debt market.
