Pakistan Retired Over Rs4.7 Trillion in Debt Early

Pakistan has repaid more than Rs4.7 trillion of public debt before its due date through a series of buyback operations, according to Finance Minister’s adviser Khurram Schehzad.

In a post on X, Schehzad said the government’s latest buyback of Pakistan Investment Bonds (PIBs) worth Rs279 billion brought the total early debt repayment to Rs4.722 trillion. He called it the “largest and most sustained liability management operation in Pakistan’s history”.

He said Pakistan repaid Rs2.9 trillion of debt before maturity during FY26, compared to Rs1.8 trillion in FY25. Of the total repaid in FY26, 51% was central bank debt and 49% was market debt.

Schehzad said the early repayment is part of an active debt management strategy, not routine debt repayment. The plan is aimed at reducing refinancing risks, lowering debt servicing costs, improving cash flow, and increasing investor confidence.

He added that the average maturity of Pakistan’s debt increased from 2.7 years in FY24 to more than 3.8 years in FY26.

According to Schehzad, Pakistan’s debt-to-GDP ratio fell from 75% in FY23 to about 68.5% in FY26, while dependence on central bank financing also declined.

The government carried out the buyback operations in several phases between October 2024 and May 2026, with the latest operation worth Rs279 billion completed in May 2026.

Schehzad said the debt management strategy is part of wider economic reforms to strengthen public finances, reduce inflation, improve fiscal and external balances, and support long-term economic stability.