Pakistan’s gross financing needs are projected at PKR 28.647tn for FY2026–27, about 20% of projected GDP. The Finance Division’s Annual Borrowing Plan, published on 29 September, divides that requirement into a PKR 7.020tn federal fiscal deficit and PKR 21.627tn in debt maturities. PakFiscal’s calculation from those two published figures puts maturities at about 75.5% of the total.
Gross financing needs are not new spending
A large gross financing number can be mistaken for a new spending plan or for the amount by which debt will rise. Most of this year’s requirement is principal coming due on earlier borrowing. Refinancing those maturities creates a cash need, but does not itself represent a new programme or an equal increase in the debt stock. The projected fiscal deficit is the borrowing requirement tied to the current year’s budget gap.
The plan estimates domestic maturities of PKR 17.096tn and external maturities of PKR 4.531tn. Domestic maturities include PKR 11.1tn in Treasury bills, much of it falling due in the first half of the fiscal year. External principal repayments are estimated at USD 15.6bn; the plan expects USD 7bn of bilateral deposits to be rolled over and records no Eurobond maturity in FY2027.
The planned financing mix
To finance the PKR 7.020tn federal deficit, the plan lists PKR 6.046tn in net domestic borrowing, PKR 813bn in net external financing and PKR 161bn from privatisation. These are deficit-financing sources, not the same thing as the PKR 28.647tn gross financing need, which also includes maturing principal.
For domestic markets, the government says it intends to reduce net reliance on short-term Treasury bills and shift towards medium- and long-term instruments. It targets fixed-rate Pakistan Investment Bonds to make up more than half of new PIB issuance and expects gross Sukuk issuance of about PKR 6.6tn. For external markets, it plans more than USD 2bn in Eurobond or international Sukuk issuance, subject to market conditions. These are plans, not completed borrowings.
What to watch
The plan makes refinancing the main near-term cash-management task. Its execution will depend on auction demand, interest costs, access to external markets and whether expected deposit rollovers materialise. The Finance Division says the figures are based on information available when the plan was prepared and may change with economic and debt-market conditions.
PakFiscal calculation: PKR 21.627tn in maturities divided by PKR 28.647tn in gross financing needs, using the published FY2027 plan. Source: Finance Division, Debt Management Office, Annual Borrowing Plan FY2027, published 29 September 2026.
