The government has paid off Rs500 billion worth of debt to the State Bank of Pakistan (SBP) ahead of schedule, pushing the total early repayments to Rs1.5 trillion.
In a post on social media platform X (formerly Twitter), Finance Advisor Khurram Shahzad termed the development a “bold fiscal success”, crediting the Debt Management Office for facilitating the early retirement of the loan. The repayment, originally scheduled for 2029, was made four years in advance.
“This milestone reflects the government’s commitment to prudent fiscal management and a shift towards a sustainable debt profile,” Mr Shahzad stated.
He added that the early repayment would ease financial pressure and reduce future liabilities, helping to stabilise the macroeconomic outlook.
According to the advisor, the average maturity of Pakistan’s public debt portfolio has improved significantly, increasing from about two and a half years to approximately four and a half years. This shift, he noted, was a step towards strengthening long-term economic resilience.
“The decision to repay ahead of schedule demonstrates Pakistan’s resolve to reduce its dependence on debt and improve overall financial discipline,” Mr Shahzad added.
Officials at the Finance Ministry believe that a longer average tenure of debt enhances investor confidence, reduces refinancing risks, and supports long-term economic planning.
