ISLAMABAD: Pakistan has retired Rs2,600 billion ($9.2 billion) debt to central and commercial banks in less than one year, the country’s finance adviser said on Sunday, describing it as a “record achievement” amid improving fiscal discipline.
The Pakistani finance ministry early-retired Rs500 billion to the central bank on June 30, while the country’s Debt Management Office executed another repayment of Rs1,133 billion on August 29, according to Khurram Schehzad, adviser to Finance Minister Muhammad Aurangzeb.
The brought the total early retirement of the State Bank of Pakistan (SBP) debt to Rs1,633 billion. Earlier this fiscal year, the finance ministry retired domestic commercial market debt of Rs1,000 billion, in the first such advanced debt retirement operation in Pakistan’s history.
“Including both the central bank and commercial portions, the total early debt retirement in less than one year now comes to over PKR 2,600 billion — an unprecedented scale and decisive action in the country’s fiscal history,” Schehzad said on X.
Pakistan’s total domestic debt stood at Rs51,518 billion in March 2025, according to the central bank data.
