1. Public Debt Management in Pakistan Debt Policy Coordination Office Ministry of Finance

2. Objectives ‒ Covering the financing needs and payment obligations; ‒ Minimizing risks of the public debt portfolio cognizant of cost & risks trade-offs; ‒ Facilitate the development of domestic debt market.

3. (2010-2016*) 2010201120122013 (P)2014 (P)2015 (P)SEP'15 (P) (RS. IN BILLION) Domestic Debt4,654.36,016.77,638.19,521.910,920.012,198.912,718.7 External Debt4,351.94,750.25,057.24,771.05,076.55,175.55,378.6 Total Public Debt9,006.210,766.912,695.314,292.915,996.517,374.418,097.3 (IN PERCENT OF GDP) Domestic Debt31.332.938.142.543.644.541.5 External Debt29.326.025.221.320.318.917.5 Total Public Debt60.658.963.363.963.863.459.0 (IN PERCENT OF TOTAL DEBT) Domestic Debt51.755.960.266.668.370.270.3 External Debt48.344.139.833.431.729.829.7 MEMO External Debt (US$ in billion)50.955.353.547.951.450.851.5 GDP (Rs. in billion)14,86718,27620,04722,37925,06827,38430,672 P: Provisional * end-September, 2015 Public Debt Statistics

5. ‒ Reduction in refinancing risk; ‒ Reduction in interest rate risk; ‒ Reduction in FX risk; ‒ Alignment of wholesale debt instrument rate with the market yields; ‒ Synchronization of rate setting on retail debt Instruments with wholesale secondary market; ‒ Reduction in cost of domestic debt. Debt Performance Indicators (2013–15)

6. Public Debt Sustainability Indicators Cost and Risk Indicators (a) External debtDomestic debtTotal debt 201320152013201520132015 Refinancing risk ATM (years)10.19.41.82.34.54.3 Debt maturing in 1yr (% of total)8.98.164.247.346.036.2 Interest rate risk ATR (years)9.28.61.82.34.24.1 Debt Re-fixing in 1yr (% of total)22.220.667.247.752.440.0 Fixed rate debt (% of total)83.483.339.658.954.065.8 FX risk FX debt (% of total debt)32.928.3 ST FX debt (% of official liquid reserves)68.527.9 Public Debt Sustainability

7. Medium Term Debt Strategy ‒ Preference to concessional external financing over domestic borrowing; ‒ Gradually lengthen the maturity profile of domestic debt; ‒ Minimizing exposure to interest rate risk; ‒ Pursuing a smooth redemption profile; ‒ Maintaining presence in the international capital markets.

8. Thank You