Domestic...

The debt to GDP ratio has fallen to 99.1 % in 2024 from 114.2% in 2022 due to restructuring and revenue driven fiscal consolidation under the IMF program.

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The PDMO highlighted the size of short-term domestic instruments as a key vulnerability.

Treasury Bill stocks are estimated at Rs. 3.6 trillion at end 2025 and will come due in 2026.

“This concentration of short-term maturities underscores the need for effective revenue and cash flow management,” the PDMO said.

Treasury Bill stocks were Rs. 4.09 trillion and Rs. 4.07 trillion at the beginning of 2024 and 2025 respectively and were refinanced.

Treasury Bonds dominate the broader domestic redemption profile, with maturities peaking at Rs. 2.15 trillion in 2028. Issuance shifted to short term maturities following the 2022 crisis, leading to a cluster of redemptions between 2027 and 2033.

The PDMO said investor appetite has begun to move back toward mediumand long-term maturities in the second quarter of 2025, reflecting improved market stability.

According to the PDMO, 12% of the total debt stock of Rs. 30.8 trillion comprises T-Bills and 48% is in T-Bonds as of September 2025.

“The shorter average time to maturity and the higher proportion of debt maturing within one year in the domestic segment present clear rollover risks,” the PDMO said. It added that efforts are underway to lengthen maturities and improve the structure of domestic liabilities.