Pakistan’s Annual Borrowing Plan for FY2026-27 projects Rs28.647 trillion in gross financing needs, with domestic borrowing expected to provide the bulk of financing.

Pakistan Projects Rs28.647 Trillion Financing Needs for FY2027

Government Plans Rs6.046 Trillion Domestic Borrowing to Finance Fiscal Deficit

By News Desk On Sep 30, 2026

ISLAMABAD: (News Desk) – The federal government has projected gross financing needs of Rs28.647 trillion for fiscal year 2026-27, equivalent to around 20% of gross domestic product (GDP), and plans to finance most of its Rs7.02 trillion fiscal deficit through domestic borrowing.

According to the Annual Borrowing Plan (ABP) for FY2027, prepared by the Debt Management Office, the government has assumed an exchange rate of Rs290 against the US dollar for the fiscal year.

The plan states that its successful implementation will depend on developments in the macroeconomic and geopolitical environment, as well as the government’s ability to maintain fiscal discipline and achieve its projected targets.

Under the financing strategy, the government plans to raise Rs6.046 trillion through net domestic borrowing, while net external financing is expected to contribute Rs813 billion. Another Rs161 billion is projected from privatisation proceeds.

The government has also outlined a shift in its domestic borrowing strategy, aiming to reduce reliance on short-term Treasury Bills and increase the issuance of medium- and long-term debt instruments. The move is intended to reduce refinancing risks and extend the maturity profile of public debt.

The borrowing plan envisages net issuance of Rs4.58 trillion in Pakistan Investment Bonds ((PIBs), with fixed-rate PIBs expected to account for more than 50% of new issuances. The government has also planned around Rs3.785 trillion through Government Ijara Sukuk, Bai Muajjal and short-term Sukuk.

In addition, gross Sukuk issuance is projected at approximately Rs6.6 trillion during FY2026-27, following the introduction of Hybrid Sukuk and short-term Sukuk with three- and six-month tenors.

The strategy also proposes introducing a 20-year fixed-coupon bond after consultations with stakeholders. The government further intends to replace the existing 10-year zero-coupon floating-rate instrument with a 10-year fixed-rate instrument.

The borrowing requirements come as the government faces debt maturities of Rs21.627 trillion during FY2026-27. These include Rs17.096 trillion in domestic debt maturities and Rs4.531 trillion in external repayments.

Combined with the projected fiscal deficit, these repayments bring the government’s gross financing needs to Rs28.647 trillion for the fiscal year.