Pakistan Retires Rs3.65 Trillion in Domestic Debt Early After Rs300 Billion SBP Payment

Overview

• Advisor Khurram Schehzad said Pakistan has early-retired Rs3,654 billion of domestic debt over 14 months since late 2024.
• A Rs300 billion transfer to the State Bank of Pakistan on Jan 29 marked the latest repayment in the ongoing program.
• Nearly 44% of SBP-held liabilities have been paid down, cutting the central bank’s debt stock from about Rs5,500 billion to roughly Rs3,000 billion, including sums once due in 2029.
• Officials reported that 65% of early repayments went to SBP debt, 30% to treasury bills and 5% to Pakistan Investment Bonds, with average domestic maturity rising from 2.7 to over 4 years.
• FY2026 through January recorded more than Rs2,150 billion in early retirement, described as 44% above FY2025, alongside an earlier reported decline in total public debt to around Rs80 trillion by November 2025.