Pakistan retires record Rs1.2tn domestic debt ahead of maturity: Khurram Schehzad
- The adviser said the measures form part of a broader shift towards active sovereign liability management
Pakistan made its largest early domestic debt repayment of Rs1.2 trillion to the State Bank, part of a strategy to strengthen its sovereign balance sheet and reduce future debt-servicing pressures.
- Pakistan's largest early domestic debt repayment.
- Cumulative domestic debt retired ahead of maturity.
- Strategy for strengthening the sovereign balance sheet.
Pakistan has made its largest-ever early repayment of domestic debt, retiring Rs1.2 trillion owed to the State Bank of Pakistan (SBP) “well ahead of its scheduled maturity,” Khurram Schehzad, an adviser to the finance minister, said on Saturday.
“This is the single largest early-repayment tranche undertaken so far, surpassing the previous high of Rs1,133 billion — and takes cumulative domestic debt retired ahead of maturity to over Rs5.92 trillion,” the adviser said in a post on social media platform X.
The Rs1.2 trillion repayment is the largest single early-retirement tranche so far, surpassing the previous high of Rs1.133 trillion in August 2025.
“The momentum is equally significant: Rs1.8tn was retired early in FY25, Rs.2.9tn in FY26 – 62% higher – and another Rs1.2tn already in FY27,” he said.
Pakistan repaid over Rs4.7trn debt ahead of maturity: Khurram Schehzad
The adviser said the measures form part of a broader shift towards active sovereign liability management, “using improved fiscal space to retire obligations early, reduce refinancing and rollover risks, lower future debt-servicing pressures and strengthen the public debt profile”, which would create more fiscal space for the economy.
“Pakistan is increasingly moving from simply managing debt maturities to actively strengthening its sovereign balance sheet,” he said.
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