Pakistan retires record Rs1.2tn domestic debt ahead of maturity: Khurram Schehzad
Pakistan has made its largest-ever early repayment of domestic debt, retiring Rs1.2 trillion owed to the State Bank of Pakistan (SBP) “well ahead of its scheduled maturity,” Khurram Schehzad, an adviser to the finance minister, said on Saturday. “This is the single largest early-repayment tranche undertaken so far, surpassing the previous high of Rs1.133 billion — and takes cumulative domestic…
Pakistan has made history by repaying its largest-ever domestic debt early, retiring Rs1.2 trillion owed to the State Bank of Pakistan ahead of its scheduled maturity date, according to an adviser to the finance minister, Khurram Schehzad. This single repayment surpasses the previous record of Rs1.133 billion and brings the cumulative amount of domestic debt retired ahead of maturity to over Rs5.92 trillion.
This aggressive debt management strategy is part of a broader shift towards active sovereign liability management, with the aim of reducing refinancing and rollover risks, lowering future debt-servicing pressures, and strengthening the public debt profile. This move is expected to create more fiscal space for the economy and demonstrate Pakistan's commitment to improving its sovereign balance sheet.
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