The adviser to the Finance Minister of Pakistan announces the early repayment of nearly Rs3.6 trillion in debt.

Khurram Schehzad, adviser to the Finance Minister, stated on Thursday that Pakistan has been repaying its domestic debt ahead of maturity at an unprecedented scale for the first time in its history, indicating a significant transition towards fiscal discipline and prudent economic management.

The adviser stated on X that, since late 2024, the Ministry of Finance had early-retired Rs3,654 billion of domestic debt owed to the market and the State Bank of Pakistan (SBP) in a mere 14 months.

The most recent repayment of Rs300 billion was executed to the SBP on Thursday.

Khurram Schehzad stated that this significant accomplishment signifies a definitive transition towards fiscal restraint, legitimacy, and prudent economic governance.

He disclosed that the early repayments were Rs1,000 billion in December 2024, Rs500 billion in June 2025, Rs1,160 billion in August 2025, Rs200 billion in October 2025, Rs494 billion in December 2025, and Rs300 billion in January 2026.

He stated that the most recent repayment indicated that FY2026 (July–January) alone achieved over Rs2,150 billion in early debt retirement, representing a 44 percent increase compared to the entire early repayments made in FY2025.

The advice said that about 44 percent of the debt owned by the SBP had been prematurely retired, decreasing the central bank’s debt holdings from approximately Rs5,500 billion to around Rs3,000 billion, inclusive of liabilities initially maturing in 2029.

He stated that of the overall early repayments, 65 percent were related to SBP debt, 30 percent to treasury bills, and five percent to Pakistan Investment Bonds, leading to a more robust and sustainable debt profile.

Khurram Schehzad stated that the favourable effect was seen in the total public debt, which decreased from around Rs80.5 trillion in June 2025 to over Rs80 trillion by November 2025.

He additionally observed that Pakistan’s debt-to-GDP ratio has decreased from over 74 percent in FY2022 to roughly 70 percent, indicating broader enhancements in fiscal fundamentals along with prudent debt management.

He stated that per-capita debt statistics frequently create deceptive narratives and fail to deliver a realistic evaluation of a nation’s true debt load.

He stated that numerous sophisticated economies had some of the highest per capita debt levels worldwide, yet maintain fiscal stability owing to robust revenue streams, repayment capabilities, and efficient debt management.