Pakistan Repays Over Rs4.7 Trillion Debt Ahead of Schedule
At a glance
- Pakistan has repaid over Rs4.722 trillion ($17 billion) of public debt ahead of its maturity.
- This marks the country's largest-ever proactive liability management exercise, achieved for the first time in its history.
- The debt-to-GDP ratio has declined from 75% to 68.5% by fiscal year 2026.
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Pakistan has repaid over Rs4.722 trillion of public debt ahead of its maturity through a series of buyback operations, marking the country's largest-ever proactive liability management exercise. This achievement, equivalent to nearly $17 billion, is the first of its kind in Pakistan's history, aimed at improving fiscal health and reducing risks. According to Finance Minister’s advisor Khurram Schehzad, the latest buyback of Pakistan Investment Bonds (PIBs) worth Rs279 billion, approximately $1 billion, has raised the total early debt retirement to Rs4.722 trillion.
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Pakistan has repaid over Rs4.722 trillion ($17 billion) of public debt ahead of its maturity, marking the first time in the country's history that such a significant financial milestone has been achieved through proactive liability management.
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Pakistan has achieved a major financial milestone by repaying more than Rs4,722 billion in loans ahead of their scheduled maturity dates, marking the first such achievement in the country’s history. This amount is equivalent to nearly $17 billion.
Reports on July 15, 2026, indicate that Pakistan has repaid a loan ahead of schedule for the first time in its history.
Pakistan has successfully retired over Rs2.9 trillion in domestic debt before maturity during the last fiscal year (FY26), bringing the cumulative value of early debt retirement through buyback operations to over Rs4.72 trillion, or approximately USD17 billion, since October 2024. This was revealed by Khurram Schehzad, Adviser to the finance minister, on his X platform.
Schehzad termed this the largest and most sustained liability management exercise in the country’s history. The latest operation in May 2026 involved the buyback of Pakistan Investment Bonds (PIBs) worth Rs279 billion, approximately USD1 billion.
Official data indicates that debt buybacks were conducted in multiple phases, including Rs826 billion in October 2024, Rs200 billion in November 2024, Rs273 billion in March 2025, Rs500 billion in June 2025, Rs1.133 trillion in August 2025, Rs122 billion in November 2025, Rs494 billion in December 2025, Rs300 billion in January 2026, and Rs595 billion in April 2026, in addition to the May 2026 operation.
The pace of early debt retirement significantly accelerated during FY26, with the government retiring Rs2.9 trillion worth of debt, marking a 62 percent increase over the Rs1.8 trillion retired during FY25. Of the retired debt, 51 percent comprised liabilities owed to the State Bank of Pakistan (SBP), while the remaining 49 percent consisted of market debt.
These liability management measures have also strengthened Pakistan’s debt profile, with the average maturity of public debt improving from 2.7 years in FY24 to over 3.8 years in FY26.
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