The Ministry of Finance has informed the National Assembly that proactive debt management strategies have reduced interest expenses by over Rs850 billion in fiscal year 2024–25 and helped create additional fiscal space.
In a written reply during the Question Hour, the ministry said the measures included a shift toward medium- and long-term securities, reduced short-term issuances, the country’s first sovereign debt buybacks, and the introduction of long-term zero-coupon bonds. It added that these steps enabled the government to lower its budgeted interest expenditure from Rs9.7 trillion in FY24 to Rs8.2 trillion in the FY26 budget.
Responding to a question by MNA Asif Khan, the ministry said that, according to the Auditor…