-
-
In less than a year, Pakistan has made a historic move by repaying public debt amounting to Rs2,600 billion ahead of schedule, according to Finance Adviser Khurram Shehzad.
In a recent statement, Khurram Shehzad stated that on 30 June 2025, the ministry paid Rs500 billion in advance.
Just two months later, on 29 August 2025, the Debt Management Office repaid another Rs1133 billion. This brought the total repayment to the State Bank of Pakistan (SBP) to Rs1633 billion.
Earlier in the first half of fiscal year 2025, the Ministry of Finance also repaid Rs1000 billion in loans from the domestic commercial market. Shehzad noted this was the first time such a move was made in the country’s history.
Read More: Pakistan moves to exempt US tech giants from taxes
These repayments, both to the central bank and commercial entities, represent a total loan retirement of over Rs2600 billion in less than a year.
According to Shehzad, this early debt retirement reflects a strong commitment to fiscal discipline and public finance stability. He called the move a “decisive and unprecedented action” in Pakistan’s financial history. It also signals the restoration of financial credibility at both domestic and international levels.
He emphasized that such efforts help rebuild trust in the government’s financial management and improve long-term macroeconomic indicators.
