Pakistan has repaid more than Rs4.722 trillion ($17 billion) in debt ahead of schedule for the first time in the country’s history, marking a significant milestone in public debt management. Finance Minister’s Adviser Khurram Shehzad said the early repayments reflect stronger fiscal discipline and improved debt management. The government believes the move will strengthen investor confidence and support long-term financial stability.
According to Khurram Shehzad, Pakistan has already made Rs2.9 trillion in early debt repayments during the 2025-26 fiscal year, representing a 62 percent increase compared with the previous fiscal year. He said the accelerated repayments demonstrate the government’s commitment to reducing borrowing costs and improving the country’s financial position.
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The adviser explained that 51 percent of the debt repaid ahead of maturity was owed to the State Bank of Pakistan, while the remaining 49 percent was owed to other financial institutions. He said the repayment strategy was designed to improve the overall structure of public debt and reduce future financing pressures.
Khurram Shehzad also said Pakistan’s debt-to-GDP ratio has declined from 75 percent to around 68.5 percent, reflecting progress in fiscal management. He attributed the improvement to prudent borrowing policies, stronger macroeconomic management, and effective financial planning aimed at enhancing debt sustainability.
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The government says the latest achievement reinforces Pakistan’s commitment to building a lower-cost and more sustainable financial system. Officials believe improved debt management will enhance economic resilience, strengthen market confidence, and create a more stable environment for domestic and foreign investment as the country continues its broader economic reform agenda.