The Ministry of Finance has unveiled a comprehensive plan to address massive debt burden exceeding Rs71 trillion. The government aims to reduce the country’s reliance on external debt and improve its debt repayment capacity.

The government will actively seek out concessional external financing to ease pressure on existing debt obligations. Existing projects funded by international loans will be expedited to ensure timely completion and maximize returns. The government will also enhance national savings schemes to encourage domestic savings and reduce reliance on external borrowing.

To expand domestic resource mobilization, the government will increase its presence in international markets by issuing bonds, including Panda bonds, Eurobonds, and international Sukuk.

The plan includes measures to activate the domestic debt capital market and attract both domestic and foreign investors. The establishment of a non-bank sector, including pension funds, insurance companies, and asset management companies, will be promoted over the next few years.

Structural reforms will be implemented to broaden the tax net and improve tax collection efficiency. The plan emphasizes reducing fiscal deficits to enhance macroeconomic stability and reduce the need for additional borrowing. The government will promote the development of a Shariah-compliant debt market in the coming years.

To manage debt repayment obligations more effectively, the government will extend the maturity profile of its domestic and external debt portfolio. The government will implement a medium-term debt management strategy to ensure sustainable debt management practices.

The Ministry of Finance believes that the implementation of this comprehensive plan will contribute to economic stability, reduce dependence on external debt, and pave the way for sustainable economic growth.