Pakistan has made its largest-ever single early repayment of domestic debt, paying Rs1,200 billion (Rs1.2 trillion) to the State Bank of Pakistan (SBP) ahead of its scheduled maturity. The repayment was announced by Khurram Schehzad, Adviser to the Finance Minister, on August 29, 2026.
The latest payment exceeds the previous record of Rs1,133 billion, which Pakistan repaid ahead of schedule in August 2025. With the new payment, the total domestic debt retired before maturity has crossed Rs5.92 trillion, bringing early repayments close to the Rs6 trillion mark.
Officials said the government has been increasingly using available fiscal space to repay loans before their due dates. Pakistan retired around Rs1.8 trillion during FY2024-25 and another Rs2.9 trillion during FY2025-26. A further Rs1.2 trillion has already been repaid early in the current fiscal year.
The government views the move as part of a broader shift toward active debt management. Paying debt early can reduce refinancing and rollover risks, lower future debt-servicing pressure and strengthen the country’s overall public debt position.
The development comes as Pakistan continues efforts to improve fiscal stability and manage its large debt burden. Officials say the strategy could create greater financial flexibility for the government in the coming years.
