Pakistan retires record Rs1.2 trillion domestic debt ahead of maturity: Khurram Shehzad

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 Shehzad, adviser to the finance minister, said on Saturday.

ISLAMABAD: 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 Shehzad, 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 trillion — and takes cumulative domestic debt retired ahead of maturity to over Rs5.92 trillion,” Khurram said in a social media post.

https://x.com/kschehzad/status/2093633825121419704?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E2093633825121419704%7Ctwgr%5E2acafcad05929dc7bf49758495388d580a6bf04d%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fwww.brecorder.com%2Fnews%2F40436995

The Rs1.2 trillion repayment is the largest single early-retirement tranche to date, surpassing the previous record of Rs1.133 trillion recorded in August 2025.

“The momentum is equally significant: Rs1.8 trillion was retired early in FY25, Rs2.9 trillion in FY26 — 62 per cent higher — and another Rs1.2 trillion already in FY27,” he said.

Khurram said the measures were 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.

“Pakistan is increasingly moving from simply managing debt maturities to actively strengthening its sovereign balance sheet,” he said.