The government has cleared Rs500 billion in debt owed to the State Bank of Pakistan (SBP) well ahead of its original 2029 schedule, bringing total early repayments to an impressive Rs1.5 trillion.
Finance Advisor Khurram Shahzad described this move on social media as a “bold fiscal success,” highlighting the Debt Management Office’s role in making the early repayment possible.
“This milestone underscores our commitment to responsible fiscal management and building a healthier debt profile,” Shahzad said, noting that paying off the debt four years early helps reduce financial pressure and future obligations, ultimately strengthening the broader economic outlook.
He further explained that the average maturity period of Pakistan’s public debt portfolio has increased from roughly two and a half years to about four and a half years, a change aimed at bolstering the country’s long-term economic resilience.
“By repaying early, we show our determination to cut reliance on debt and reinforce fiscal discipline,” Shahzad added.
Finance Ministry officials echoed this sentiment, emphasizing that lengthening the average debt tenure helps boost investor confidence, lowers refinancing risks, and supports better long-term economic planning.
This early repayment forms part of a wider fiscal strategy to stabilise the economy, reduce debt vulnerabilities, and create a more sustainable foundation for future growth.
