Pakistan pays off Rs2,600bn debt ahead of schedule

Islamabad: Advisor to the Finance Minister Khurram Shahzad has said that for the first time in national history, Pakistan has repaid a debt of Rs2,600 billion ahead of schedule in a historic move.

Khurram Shahzad stated that on June 30, 2025, the Ministry of Finance repaid a debt of Rs500 billion ahead of schedule, and just 2 months later, on August 29, 2025, the Debt Management Office carried out another memorable repayment of a debt of Rs1,133 billion, which brought the State Bank’s debt repayment to Rs1,633 billion.

He added that the Ministry of Finance repaid the debt of Rs1,633 billion owed to the State Bank of Pakistan (SBP) and this was done in just 59 days.

The advisor further said that earlier, the Ministry of Finance had repaid Rs1,000 billion of local commercial market debt in the first half of the fiscal year 2025, which was the first such debt repayment measure in the history of Pakistan.

According to the Advisor to the Finance Minister, the total debt retirement, including both central bank and commercial, in less than a year has now exceeded Rs2,600 billion, which is an unprecedented and decisive step in the country's financial history.

This process is a reflection of the stabilization of public finances and restoration of financial credibility through early debt retirement, he also stated.