Pakistan pays off Rs1.2tr debt early, largest tranche yet

Ahead of schedule, the Ministry of Finance returned Rs1,200bn to the State Bank of Pakistan, according to Mettis Global. The August 2026 payment is the biggest single early repayment so far, surpassing the Rs1,133bn record from August 2025. Domestic debt retired before maturity now totals over Rs5.92tr.

Khurram Schehzad shared the development on X, and the figures show the repayment pace has picked up over the past two years. Earlier tranches include Rs826bn in October 2024, Rs500bn in June 2025 and Rs595bn in April 2026. On a cumulative basis, early retirements reached Rs1.8tr in FY25 and Rs2.9tr in FY26, a 62% rise, and a further Rs1.2tr has been repaid so far in FY27.

According to the report, the state is drawing on more room in its finances to repay obligations before they fall due, cutting refinancing and rollover exposure and easing later debt-service costs. The report frames the policy as deliberate, active management of sovereign liabilities that aims to improve the public debt position.