The Ministry of Finance has early-repaid Rs1.2 trillion to the State Bank of Pakistan (SBP) well ahead of its scheduled maturity, marking the largest single early debt repayment made so far, it was reported on Saturday.
The latest development was shared by Finance Minister’s advisor Khurram Schehzad on his X account.
He said the August 2026 repayment surpassed the previous record of Rs1.133 trillion, made in August 2025.
With the latest payment, the cumulative domestic debt retired ahead of maturity has crossed Rs5.92 trillion.
The early repayment programme gained momentum over the past two years.
Pakistan repaid Rs826 billion in October 2024, Rs200 billion in November 2024, Rs273 billion in March 2025, Rs500 billion in June 2025, and Rs1.133 trillion in August 2025.
The pace continued in fiscal year 2026, with Rs122 billion repaid in November 2025, Rs494 billion in December, Rs300 billion in January 2026, Rs595 billion in April and Rs279 billion in May, followed by the record Rs1.2 trillion repayment in August 2026.
On a cumulative basis, the government retired Rs1.8 trillion ahead of maturity in FY2025, which increased to Rs2.9 trillion in FY2026 — a 62 percent rise.
Another Rs1.2 trillion has already been repaid in FY2027.
The Finance Ministry’s strategy reflects a shift towards more active management of government debt.
By repaying loans before their maturity, the government aims to reduce refinancing and rollover risks, ease pressure from future debt-servicing payments, and improve the overall public debt profile.
