Pakistan has made its biggest-ever early repayment of domestic debt, paying Rs 1,200 billion to the State Bank of Pakistan (SBP) before the scheduled maturity date. The development was announced on August 29 by Khurram Schehzad, Adviser to the Finance Minister.
The latest payment is part of the government’s ongoing effort to manage its debt more actively. By paying loans before their due dates, the government aims to reduce future repayment pressure and the risk of having to arrange large amounts of money when debts mature.
The August payment is larger than the previous record of Rs 1,133 billion, which Pakistan repaid early in August 2025. The government has been making such payments since October 2024, when it retired Rs 826 billion ahead of schedule.
According to officials, the strategy can also reduce refinancing and rollover risks and improve the country’s overall debt position. Earlier government data showed that Pakistan had already retired Rs 4.722 trillion before maturity between October 2024 and May 2026.
The latest payment brings the total domestic debt retired ahead of maturity to around Rs 5.92 trillion.
Key Statistics
| Detail | Amount |
|---|---|
| Latest early repayment | Rs 1,200 billion |
| Previous record, August 2025 | Rs 1,133 billion |
| Total early domestic debt retired | Around Rs 5.92 trillion |
| First repayment in this programme, October 2024 | Rs 826 billion |
