Islamabad: Pakistan has retired 2.6 trillion rupees of debt ahead of schedule, marking an unprecedented achievement in the nation's fiscal history. According to Radio Pakistan, Finance Minister's Advisor Khurram Schehzad announced this significant development through a post on X, highlighting the government's commitment to fiscal discipline by retiring over 1.6 trillion rupees in debt to the State Bank of Pakistan in just 59 days. On June 30, 2025, the Ministry of Finance made an early retirement of 500 billion rupees. This was followed by the Debt Management Office executing a substantial repayment of 1,133 billion rupees on August 29, 2025. These actions resulted in a total early retirement of State Bank of Pakistan debt amounting to 1,633 billion rupees. Additionally, the government retired domestic commercial market debt of 1,000 billion rupees in the first half of the current fiscal year, marking the first such advanced debt retirement operation in Pakistan's history. Khurram Schehzad emphasized that the combined early retirement of central bank and commercial debts now totals over 2.6 trillion rupees, a decisive shift from previous debt-heavy practices. This move significantly reduced the State Bank of Pakistan's debt from 5.5 trillion to 3.8 trillion rupees, cutting nearly 30 percent of the debt well before its 2029 maturity. Schehzad also highlighted the benefits of these early repayments, including eased refinancing burdens for 2029, lowered rollover risks, and increased room for development spending. The average maturity of domestic debt rose to 3.8 years from 2.7 years in the last fiscal year, surpassing the IMF's target and strengthening fiscal resilience. Furthermore, the Advisor noted that disciplined early repayments, coupled with falling rates, have resulted in over 800 billion rupees in taxpayer savings this fiscal year. By prioritizing repayment and reversing the cycle of unchecked borrowing, Pakistan aims to restore credibility, enhance resilience, and build a sustainable fiscal future.
Pakistan Achieves Historic Debt Retirement Milestone: Khurram
RECENT NEWS
Punjab Launches Mental Health Initiatives for Teachers
October 10, 2026
Punjab Launches Mental Health Initiatives for Teachers
October 10, 2026
Punjab Launches Mental Health Initiatives for Teachers
October 10, 2026
Pakistan Secures Multiple Awards at International Technology Event
October 10, 2026
Pakistan to Face Sri Lanka in Second T-20 International Match
October 10, 2026
Pakistan Leaders Urge Open Dialogue on Mental Health
October 10, 2026
PTI Criticized for Neglecting Security in Khyber Pakhtunkhwa
October 10, 2026
Pakistan and Maldives Pledge to Enhance Bilateral Relations
October 10, 2026
Prime Minister Inaugurates National Technology Park in Islamabad
October 10, 2026
DPM Highlights Strategic Partnership with Türkiye
October 10, 2026
Shehbaz Sharif Invites Maulana Fazlur Rehman for Meeting
October 10, 2026
Pakistan Urges Immediate De-escalation in Ukraine Conflict
October 10, 2026
Prime Minister and President Address Political and Security Issues
October 10, 2026