Islamabad: Pakistan has made its largest-ever single early domestic debt repayment, retiring Rs1.2 trillion owed to the State Bank of Pakistan before its scheduled maturity, according to Adviser to the Finance Minister Khurram Schehzad. The latest payment has pushed cumulative domestic debt retired ahead of maturity to more than Rs5.92 trillion.
Government figures show around Rs1.8 trillion was repaid early in FY2024-25, Rs2.9 trillion in FY2025-26 and another Rs1.2 trillion so far in FY2026-27. Officials say the strategy is intended to reduce refinancing and rollover risks while easing future debt-servicing pressure.
The latest repayment is specifically domestic debt owed to the SBP and should not be confused with repayment of an IMF, World Bank or foreign-government loan.
