Pakistan has made its largest-ever early repayment of domestic debt. The government paid back Rs 1.2 trillion to the State Bank of Pakistan (SBP) in August 2026, well before the money was due.
This amount is higher than the previous record of Rs 1.133 trillion paid in August 2025. With this latest payment, the total debt retired ahead of schedule has reached about Rs 5.92 trillion.
The Ministry of Finance has been making these early payments since October 2024. Past amounts include Rs 826 billion in October 2024, Rs 200 billion in November 2024, Rs 273 billion in March 2025, Rs 500 billion in June 2025, and several others in the following months. The pace has grown stronger over time. The country retired about Rs 1.8 trillion early in the 2024-25 financial year. This rose to Rs 2.9 trillion in 2025-26, an increase of around 62 percent. Another Rs 1.2 trillion has already been cleared in the current financial year.
Adviser to the Finance Minister Khurram Schehzad shared these details. He said the step is part of a careful plan to manage the country’s debt better. By paying early, the government lowers the risk of having to renew large loans at the same time. It also reduces future interest costs and creates more room in the budget for other needs.