Pakistan plans to utilise hedging instruments to manage exchange rate volatility risks, while also working to develop domestic futures and interest rate swap markets, according to the “Medium Term Debt Management Strategy (MTDS) for FY 2026-28” released by the Debt Management Office, Finance Division.
“The government is committed to actively managing foreign exchange (FX) risk. There are plans to use hedging instruments to mitigate exchange rate volatility risks,” read the Medium Term Debt Management Strategy FY2026-28.
The MTDS projects that nominal GDP will rise from Rs114.7 trillion in FY 2025 to Rs162.5 trillion by FY 2028, driven by growth in the agriculture and manufacturing sectors. It also anticipates an average primary…