Request for Proposal (RFP) for a Firm: “Development of a Domestic Debt Management Analytical Tool”  

Proposal Submission Deadline:  Wednesday 9th July, 5pm Pakistan Standard Time (PKT)

1. Brief overview 

2. Background and Rationale

The Government of Pakistan, under its macroeconomic reform programme supported by the International Monetary Fund (IMF) and other development partners, is committed to strengthening public debt management systems. As of July 2024, Pakistan’s public debt has reached PKR 62.9 trillion, representing approximately 74.3% of the country's GDP. Domestic debt constitutes a significant portion of this liability, and improving its management is vital for ensuring fiscal sustainability.

The Debt Management Office (DMO) within the Ministry of Finance (MoF) has undertaken significant measures to enhance its operational and policy frameworks. However, its existing systems for managing domestic debt data remain fragmented and heavily reliant on manual spreadsheets. These limitations hinder the DMO’s ability to conduct timely and sophisticated debt analysis, produce accurate forecasts, and undertake strategic risk assessments.

To address these challenges, the MoF, with support from the UK-FCDO, financed the REMIT programme implemented by Adam Smith International, which seeks to commission the development of a robust, modular, and user-friendly Domestic Debt Management Analytical Tool (DMAT). This tool will act as a transitional solution until a full-scale implementation of the UNCTAD Debt Management and Financial Analysis System (DMFAS) becomes viable.

3. Objectives of the Assignment

The objective of this assignment is to hire a qualified consulting firm to design, develop, test, and deploy a Domestic Debt Management Analytical Tool (DMAT) for the DMO. The tool will centralise domestic debt data, enable risk-based analysis, support fiscal and debt sustainability assessments, and generate real-time dashboards and automated reports. This system will be used for debt strategy formulation, operational planning, and compliance monitoring, with features aligned with the requirements of the Fiscal Responsibility and Debt Limitation Act (FRDLA) and the Medium-Term Debt Management Strategy (MTDS).

4.        Scope of Work

The consulting firm will design, develop, deploy, and support a comprehensive Domestic Debt Management Analytical Tool (DMAT) for the Debt Management Office (DMO), Ministry of Finance. The Tool will serve as an interim solution to strengthen the domestic debt management function, enhance the DMO’s analytical capabilities, and support strategic planning. The assignment will follow a phased and structured methodology as outlined below:

i. Inception and Requirements Analysis

This phase will focus on building a clear understanding of the functional, technical, and institutional requirements of the DMO and other key stakeholders, based on the inception report and agreed-upon functionalities. The consulting firm will conduct consultations with officials from the DMO, the Ministry of Finance, the State Bank of Pakistan, the Central Directorate of National Savings (CDNS), and the Controller General of Accounts (CGA) to document existing processes, workflows, and challenges in current debt management practices.

The objective is to identify gaps in data handling, analytics, and reporting, and to prioritise the functional requirements of the DMAT across core areas such as portfolio analytics, cash flow forecasting, risk management, and statutory compliance reporting. A stakeholder workshop, conducted on 26 February 2025, helped consolidate these requirements. The documents prepared after these workshops will be shared with the selected firm by the REMIT–ASI team.

The outputs of this phase will include a Functional Requirements Specification (FRS) and a workflow diagram for domestic debt operations, which will act as a blueprint for the subsequent stages of development.

2. System Design and Architecture

In this phase, the firm will establish the technical foundation of the DMAT. A modular and scalable system architecture will be designed to accommodate the necessary analytical functions, including portfolio tracking, scenario analysis, and dynamic dashboarding. The system will define core components, including the database schema, application programming interfaces (APIs), data pipelines, and business logic layers.

Furthermore, security protocols such as role-based access controls, data encryption, and audit trails will be incorporated into the system architecture. The firm will create comprehensive documentation, including architecture diagrams, data flow models, wireframes, and interface prototypes. The primary deliverable of this phase will be a System Design Document that outlines all technical specifications and user interface guidelines.

3. Data Preparation and Integration

Reliable data is crucial for the success of the DMAT. During this phase, the consulting firm will collaborate closely with DMO staff to validate, clean, and standardise historical domestic debt data. This process will entail reconciling records across various instruments (such as T-bills, PIBs, Sukuks, SBP loans, Prize Bonds, etc.) and sources (SBP, CDNS, CGA). DMO will be responsible for providing data and access to data to the service provider.

The firm will also develop automated data ingestion routines and secure APIs to extract and update data from internal systems, such as SBP’s auction platforms and RTGS, as well as macroeconomic datasets (e.g., GDP, inflation, interest rates) and additional stakeholders to confirm existing processes, identify gaps, and determine data linkage requirements. The outcome will be a consolidated and clean database capable of supporting historical analysis, real-time dashboards, and scenario simulations. This phase also develops a scheme for data flows from various sources and agencies. 

4. Tool Development and Configuration

This core phase involves the actual development of the DMAT and configuration of its analytical modules. These modules will include:

• Debt Portfolio Analysis: Tracking instruments by type, maturity, interest rate, creditor, and other attributes. The tool will calculate indicators such as weighted average maturity (WAM), average time to maturity (ATM), interest cost, and redemption profiles.

• Cash Flow Forecasting: Projecting principal and interest payments over short, medium, and long-term horizons, and aligning with borrowing plans and budget cycles.

• Risk Management: Analysing refinancing and interest rate risks and flagging potential stress points based on redemption spikes and interest sensitivity.

• Scenario Analysis and Policy Simulation: Allowing users to test alternative borrowing strategies under varying macroeconomic assumptions.

• Fiscal and Debt Sustainability Modules: Integrating macro-fiscal modelling to assess the impact of economic shocks on the sustainability of domestic debt.

• Reporting and Dashboards: Real-time dashboards for decision-makers and automated reporting templates aligned with legal and institutional reporting requirements.

The output of this phase will be a fully functional prototype of the DMAT, with all core modules integrated and configured for testing, and the capability to demonstrate analytics using mock or real data.

5. Testing and Validation

Before full deployment, the DMAT will undergo comprehensive testing. Initially, each module will be tested individually, followed by full-system integration testing to ensure functional consistency and accuracy. The firm will conduct User Acceptance Testing (UAT) in collaboration with DMO staff to validate outputs, assess user experience, and gather final feedback.

The tool will also undergo historical back-testing to ensure the accuracy of forecasts and analytics, as well as stress testing to evaluate its performance under adverse economic scenarios and rationality bounds. Deliverables from this phase will include a signed UAT report, a validation summary, and an updated, optimised version of the tool.

6. Capacity Building and Change Management

To ensure the institutionalisation and sustained use of the DMAT, the consulting firm will implement a comprehensive training and change management plan. This will encompass structured training sessions for analysts, managers, and system administrators. The firm will also prepare user manuals, standard operating procedures (SOPs), and technical guides for ongoing operations.

Mechanisms such as feedback loops, helpdesk protocols, and user forums will be established to promote continuous learning, facilitate troubleshooting, and encourage shared ownership. The aim is to equip the DMO with a skilled user base and adequate in-house capacity to operate and maintain the tool beyond the consultancy period.

7. Roll-Out and Institutionalisation

This phase will concentrate on the gradual deployment of the DMAT into live operational settings. The rollout will commence with select use cases and progressively expand to full adoption within the DMO. This involves integrating the tool into regular debt strategy formulation, auction planning, and compliance monitoring processes.

A formal governance mechanism will be established to oversee the implementation and updates of the tool. A reporting calendar and institutional accountability framework will also be introduced to ensure consistent and transparent utilisation of the DMAT in routine decision-making. To build ownership, a strategy will be spelt out.

8. Maintenance, Feedback, and Upgrades

The final phase addresses the post-deployment period, ensuring the long-term relevance and functionality of the DMAT. The consulting firm will provide technical support, performance monitoring, and issue resolution services for one month following the full deployment.

Based on user feedback and evolving policy needs, the firm will release updates and refinements to the tool’s modules and interfaces. Economic models embedded in the system will be updated periodically to reflect the latest macroeconomic conditions. This phase will ensure that the DMAT remains a dynamic and policy-relevant platform for domestic debt management in Pakistan. Furthermore, the firm will be required to prepare and share with the DMO a strategy for maintaining and upgrading the system.

4.1. Proposed Features of the DMO Analytical Tool

The precise functionality of the tool will be agreed upon early in the project; however, from initial discussions, it is likely to cover:

1. Core Functions

i. Debt Portfolio Analysis

• Track outstanding domestic debt by instrument type (e.g., bonds, treasury bills, loans) and government guarantees (including beneficiary details, guarantee type, expiry date, and remaining liability) and ensure updates through data links.

• Analyse debt composition by debt instruments, interest rates (fixed vs. floating), maturities, and creditor types (banks, corporate, and other institutional investors). 

• Domestic debt composition analysis is to be based on the following parameters:

• Frequency of payments, current and subsequent coupon rates, current yield, and new yield.

• Issue and maturity dates, remaining maturity, and years until maturity.

• Debt amount, realised value, and face value.

• Weighted average maturity and coupon rate.

• Short-term maturity (less than one year)

• Medium and long-term maturities (over one year)

• Conduct sensitivity analyses based on interest rates (fixed vs. floating), maturities, creditor types (banks, corporate, and other institutional investors), and tenures.

• Calculate key metrics such as Weighted Average Maturity (WAM), Average Time to Maturity (ATM), interest cost, debt rollover, and maturity profiles by month and year for instrument types and aggregated for domestic instruments (e.g., T-Bills, PIBs, Sukuks, Prize Bonds (CDNS), SBP loans, Naya Pakistan Certificate, etc.) by principal and interest.

• Time Series Analysis – track WAM and ATM changes over time.

• Reporting of domestic securities auction operations will include auction performance and analysis. The details are as follows:

• Auction performance: The system will be able to record and display the following data for each auction:

• Instrument type

• Target amount

• Participation amount

• Acceptance amount

• Maturities from previous auctions

• Analysis:able to analyse and provide trends in over/under subscription (Bid to Cover Ratio), yield rates (cost of borrowing), participation rate (involvement of various types of investors), and price volatility (i.e., the variation between the bids – differences between the highest and the lowest bids).

1. Cash Flow Projections

• Model debt service obligations (interest and principal repayments) over short, medium, and long-term horizons.

• Model the annual borrowing and quarterly issuance plans in the cash flow forecast.

• Forecast budgetary impacts of domestic debt, including scenarios of interest rate or exchange rate fluctuations.

2. Risk Management

• Assess and mitigate refinancing risks by using indicators such as maturity profiles and redemption spikes.

2. Decision Support Features

Scenario Analysis

• Simulate the impact of issuing new debt under different terms, amounts, or instruments.

• Scenario planning based on interest rate projections.

• Simulate effects on portfolio management using a set of given variables. 

3. Reporting and Visualisation

Dynamic Dashboards

• Real-time visualisation of key metrics (e.g., debt-to-GDP ratio, interest expenditure as a revenue share, etc.).

• Interactive tools for filtering data by timeframes, instruments, or creditors.

Comprehensive Reporting

• Generate automated reports for stakeholders (e.g., Government, central bank, international agencies).

• Include analytics for market performance and investor behaviour in domestic debt markets.

• Allow custom report generation by debt type, instrument type, creditor type, and time horizon (monthly, quarterly, annual).

• Option to export reports in various formats such as Excel and PDF.

4. Additional analytical capacity

Fiscal and debt sustainability analysis

• Model the impact of macroeconomic shocks on domestic debt sustainability (e.g., inflation, GDP growth).

• Test fiscal sustainability under optimistic, baseline, and pessimistic economic scenarios.

5. Functional Requirements

1. Timeline 

The total duration of the assignment will be seven months, comprising:

• Six months for system development, testing, training, and deployment.

• One month for post-deployment support.

A detailed work plan will be agreed upon at the inception stage.

2. Pakistan License, Clearance and Approvals

The prospective vendors will include in the timeline any time needed to obtain any licenses, clearances, and/or approvals required under local legal requirements to produce or deliver the products and/or services described in the Scope of Work.

3. Organisational Experience

1. A minimum of five (5) years of demonstrable experience in the design, development, and implementation of IT-based solutions related to public financial management (PFM), sovereign debt management, or comparable government financial systems.

2. Experience in projects involving automation or system development for debt portfolio management, risk analysis, or forecasting, preferably for central governments or central banks.

4. Relevant Project Experience

1. Track record of completing at least two (2) comparable assignments over the past ten (10) years.

2. Experience in developing analytical tools that include modules for cash flow forecasting, risk analysis (such as interest rate, refinancing, or exchange rate risks), and policy scenario simulations.

5. Financial and Legal Standing

1. The firm must be legally registered with the Securities and Exchange Commission of Pakistan (SECP) to provide consultancy services in Pakistan.

2. Must have had a minimum annual turnover equivalent to PKR 10,000,000 (or equivalent) in each of the last three fiscal years.

3. Must not have been blacklisted by any government or international development agency.

6. Team Composition and Expertise

1. Team Lead (Debt Management Specialist)

• Minimum Educational requirement: Master’s degree in Economics, Finance, Public Policy, or a related field (PhD preferred).

• Experience:

• At least 10 years of professional experience in public debt management or public financial management (PFM).

• Demonstrated experience leading the design or implementation of debt management systems or strategies for Ministries of Finance, Debt Management Offices, or multilateral institutions.

• Proven leadership in coordinating multi-disciplinary teams and stakeholder engagement.

• Familiarity with MTDS frameworks, FRDLA compliance, and debt sustainability analysis.

2. Senior Software Architect

• Minimum Educational requirement: A Bachelor’s or Master’s degree in Computer Science, Software Engineering, or a related discipline.

• Experience:

• Minimum 5 years of experience in system architecture design, particularly for financial or enterprise applications.

• Proven experience in designing secure, scalable, modular applications with integration capabilities (e.g., RESTful APIs).

• Knowledge of secure cloud infrastructure and data protection standards (ISO 27001, OWASP, etc.).

• Previous experience in projects involving integration with IFMIS, RTGS, or government treasury systems is highly desirable.

3. Debt Modelling Expert

• Minimum Educational requirement: Master’s degree in Economics, Applied Mathematics, Finance, or a related quantitative discipline.

• Experience:

• At least 5 years of hands-on experience in debt strategy formulation, fiscal forecasting, and risk analysis.

• Familiarity with debt sustainability analysis tools, scenario simulation models, and MTDS formulation.

• In-depth understanding of Pakistan’s FRDLA framework or similar sovereign debt legislation.

• Experience with multilateral institutions (e.g., IMF, World Bank, UNCTAD) or central government advisory bodies preferred.

4. Data Engineer / Integration Specialist

• Minimum Educational requirement: Bachelor’s or master’s degree in computer science, Data Engineering, or Information Systems.

• Experience:

• Minimum 5 years of experience in designing and implementing data integration solutions.

• Demonstrated proficiency in building secure data pipelines using APIs, ETL tools, and database management systems.

• Experience working with government financial systems, such as IFMIS, DMFAS, or RTGS, is preferred.

• A robust understanding of data governance, reconciliation protocols, and mechanisms for data validation.

5. Training & Change Management Expert

• Minimum Educational requirement: Master’s degree in Public Administration, Education, Organisational Development, or related field.

• Experience:

• Minimum 5 years of experience in designing and delivering training programmes and change management plans in the public sector.

• Experience in developing user manuals, SOPs, and conducting end-user training workshops.

• Proven track record of institutional capacity building, preferably in finance or public administration domains.

• Familiarity with adult learning methodologies and digital learning tools is a plus.

6. Business Analyst

• Minimum Educational Requirements: Bachelor’s degree in public policy, Economics, Business Administration, Computer Science, or a related field.

- A Master’s degree or professional certification (e.g., CBAP – Certified Business Analysis Professional) is highly desirable.

• Experience

• At least 5 years of experience in business analysis, preferably in the public sector or donor-funded projects.

• Demonstrated expertise in:

• Process mapping and documentation of government financial workflows
  Gathering and analysing user requirements from multi-stakeholder groups

• Facilitating stakeholder consultations and validation workshops
  Supporting system specification development, user stories, and use cases

• Familiarity with debt management or public financial management systems is an asset.

• Strong communication and facilitation skills, particularly for engaging with government counterparts.

7. QA/Test Engineer

• Minimum Educational Requirements: Bachelor’s degree in computer science, Software Engineering, Information Technology, or a related discipline.

- Certification in software testing (e.g., ISTQB Foundation or equivalent) is desirable.

• Experience

• Minimum 5 years of professional experience in software quality assurance and testing.

• Proven experience in:

• Designing and executing system and module-level test plans

• Leading User Acceptance Testing (UAT) with public sector clients

• Functional, regression, and performance testing

• Bug tracking and documenting test outcomes

• Experience with testing tools such as JIRA, Selenium, or similar platforms.

• Understanding of debt or financial system testing is a plus.

• Ability to write clear, user-focused documentation including test scripts, validation checklists, and quality assurance summaries.

6. Instructions to Bidders

Bidders should carefully examine all Instructions, Terms, and Conditions as outlined in the RFP. Failure to furnish the required information in the RFP or submitting bids that are not substantially responsive or viable in every respect will be at the bidder’s risk. It may result in the rejection of the bids. Bidders should strictly submit their bids as specified in the RFP; failing to do so, the bids will be deemed non-responsive and rejected. 

Bids shall comprise a single package containing two folders: 

1. Technical Proposal  

2. Financial Proposal 

Bidders should send soft copies of the Technical and Financial Proposal to the following address: 

Soft copies to be sent to: [email protected]

6.1 Proposal Weightings 

1. Technical Proposal 

2. Financial Proposal 

Prospective firms must be legally registered under the laws of the country in which they are organised and possess all licenses, permits and government approvals necessary for the performance of the work. 

7. Proposal Terms

1. Prospective Firms’ Understanding of the Solicitation

Prospective contractors are responsible for understanding the solicitation in its entirety, including each of its elements, and should make inquiries to ASI as necessary to ensure a thorough understanding. ASI reserves the right to disqualify any prospective vendor that it determines, at its sole discretion, does not understand the solicitation or any of its elements. Such disqualification shall be at no fault, cost, or liability whatsoever to ASI.

2. Information from ASI

All information provided by ASI in this solicitation is subject to change at any time. ASI makes no certification regarding the accuracy of any item and is not responsible or liable for any use of, or reliance on, the information or for any claims asserted therefrom.

3. Communication

All communications related to the RFP must be in writing to the point of contact mentioned above. Verbal communication shall not be effective unless formally confirmed in writing by the procurement official listed in a sealed envelope to our designated location in Lahore.

1. Formal Communications shall include, but are not limited to, the following:

• Questions concerning this solicitation must be submitted in writing to the contact person mentioned above. 

• Errors and omissions in this solicitation, as well as enhancements. Prospective firms should notify ASI of any discrepancies, errors, or omissions that may exist within this solicitation. Prospective vendors should recommend to ASI any enhancements to the work described in the solicitation which might be in ASI’s best interests.

• Inquiries about technical interpretations must be directly asked of the contact person (Alex Harris).

2. Addenda: ASI will make a good-faith effort to provide written responses to questions or requests for clarification in the form of addenda, as outlined in the Schedule of Events.

3. Posting Online: A Copy of this solicitation will be available online atwww.BrightSpyre.com.

4. Non-Disclosure Agreement

ASI reserves the right to require the prospective firms to enter into a non-disclosure agreement.

5. No Collusion

Collusion is strictly prohibited. Collusion is defined as an agreement or compact, written or oral, between two or more parties with the goal of limiting fair and open competition by deceiving, misleading, or defrauding a third party.

6. Companies Owned or Controlled by Government

The prospective vendor must disclose in writing with its Response if a government, its agents, or agencies have an ownership or managerial interest in the company. Failure to disclose government ownership of managerial interest in the company will result in the prospective contractor’s offer being removed from consideration.

7. Subcontracting

The prospective contractor must disclose in writing with its Response any subcontracting that will take place under an award. Failure to disclose subcontracting relationships will result in the prospective contractor’s offer being removed from consideration. (if permitted by the solicitation)

8. Costs

The solicitation does not obligate ASI to pay for any costs, of any kind whatsoever, that may be incurred by a prospective contractor/vendor or third parties in connection with the Response.

9. Intellectual Property

Prospective vendors may not use any intellectual property of ASI, including, but not limited to, all logos, trademarks, or trade names of ASI, at any time without the prior written approval of ASI.

10.  Prospective Contractors’ Responses

All accepted Responses shall become the property of ASI and will not be returned.

11.  Partial Awarding

ASI reserves the right to accept all or part of the Response when awarding a contract.

12.  No Liability

ASI reserves the right to accept or reject any Response or to stop the procurement process at any time, without assigning any reason or liability. ASI shall not be liable to any prospective contractor, person, or entity for any losses, expenses, costs, claims, or damages of any kind.