Pakistan has taken another step toward fulfilling its commitments to the International Monetary Fund (IMF) by extending the repayment timelines for both domestic and foreign loans. The move is designed to reduce financing pressures and improve fiscal stability in the years ahead, according to official sources.
The government plans to increase the average maturity period for domestic loans from 3 years and 8 months to 4 years and 3 months, while external debt will be stretched from 6.1 years to 6 years and 3 months. The IMF expects full compliance with this benchmark by 2028.
Economic analysts say this shift will help Pakistan manage its debt more efficiently, reduce refinancing risks, and create breathing space for economic reforms. The Ministry of Finance will submit a detailed progress report to the IMF before the next economic review.
The process will start within the current fiscal year, with Pakistan adjusting its debt management strategy accordingly. Under the policy, 30% of domestic loans will match the IMF’s “average time to refix” requirement, and another 30% will be issued at fixed policy rates to limit exposure to interest rate swings.
The government also aims to diversify its debt portfolio by raising the share of Shariah-compliant financing to 20% over the next three years, while ensuring that foreign loans do not exceed 40% of total debt.
IMF officials have underscored the importance of swift execution, and Pakistan has assured that the implementation process is already underway.