Finance Minister Senator Mohammad Ishaq Dar chaired a meeting to review the public debt related matters here on Saturday.
The DG Debt Policy Coordination Office briefed the Finance Minister on the overall debt portfolio of the country, its composition, cost and maturity. The Minister was informed that the maturity profile of the domestic debt had improved over the last two years along with a reduction in cost.
It was noted that in the recent years, external debt had reduced as a percentage of the total public debt and was at a reasonable level. The maturity profile of external debt was also fairly long. Most of the external loans contracted and disbursed during the past two years were on concessional terms.
The Minister was also informed that the cost and risks indicators of public debt portfolio had improved.
The Finance Minister emphasized the importance of prudent debt management. He stated that the country has achieved historic levels of foreign exchange reserves, and it was important now to consolidate the gains. He directed the Debt Policy Office to keep a close watch on the impact of variations in the debt portfolio and suggest measures for further improving the overall cost and maturity levels. He stated that the movement of various international currencies also provided opportunities for debt managers who can benefit from them.
He stated that the Ministry of Finance should continuously strive for more efficient and cost effective debt management, which was extremely important for every country.
The Finance Minister appreciated the efforts of debt management team and gave directions for further in-depth analysis on different aspects of debt portfolio.
