ISLAMABAD: Pakistan has repaid more than Rs4.7 trillion (about $17 billion) in public debt before maturity through proactive liability management operations, marking the largest and most sustained early debt retirement programme in the country’s history, Advisor to the Finance Minister Khurram Schehzad said on Tuesday.
In a post on social media platform X, Schehzad said the government’s latest buyback of Pakistan Investment Bonds (PIBs), worth Rs279 billion (around $1 billion), had raised the cumulative value of early debt retirement to Rs4.722 trillion.
“Pakistan’s proactive debt management continues to set new milestones,” Schehzad wrote, adding the programme is the country’s largest liability management operation to date.
𝗣𝗮𝗸𝗶𝘀𝘁𝗮𝗻 𝗥𝗲𝗽𝗮𝘆𝘀 𝗼𝘃𝗲𝗿 𝗣𝗞𝗥 𝟰,𝟳𝟬𝟬 𝗕𝗶𝗹𝗹𝗶𝗼𝗻 𝗗𝗲𝗯𝘁 𝗕𝗲𝗳𝗼𝗿𝗲 𝗧𝗶𝗺𝗲 – 𝗙𝗶𝗿𝘀𝘁 𝗶𝗻 𝗖𝗼𝘂𝗻𝘁𝗿𝘆'𝘀 𝗛𝗶𝘀𝘁𝗼𝗿𝘆
Pakistan's proactive debt management continues to set new milestones.
With the last PKR 279 billion (US$1 billion) PIB… pic.twitter.com/jjnAaJWsNN
— Khurram Schehzad (@kschehzad) July 14, 2026
Debt retirement accelerates in FY2025-26
Schehzad said the government retired Rs2.9 trillion in debt before maturity during the 2025-26 fiscal year, a 62% increase from Rs1.8 trillion retired in FY2024-25.
According to the advisor, 51% of the debt retired during FY2025-26 consisted of central bank debt, while the remaining 49% comprised market debt.
He said the latest buyback completed a series of early debt retirement operations conducted since October 2024.
According to the timeline shared by Schehzad, the government retired Rs826 billion in October 2024, followed by Rs200 billion in November 2024, Rs273 billion in March 2025, Rs500 billion in June 2025, Rs1.133 trillion in August 2025, Rs122 billion in November 2025, Rs494 billion in December 2025, Rs300 billion in January 2026, Rs595 billion in April 2026 and Rs279 billion in May 2026.
Focus on reducing fiscal risks
Schehzad said the government’s active liability management strategy was designed to reduce refinancing and rollover risks rather than serve as routine debt repayment.
He said the strategy had helped lower debt servicing costs, improve liquidity and cash flow management, strengthen investor confidence and enhance fiscal resilience.
According to Schehzad, the average maturity of Pakistan’s public debt has improved from 2.7 years in FY2023-24 to more than 3.8 years in FY2025-26.
He also said the country’s debt-to-GDP ratio had declined from 75% in FY2022-23 to an estimated 68.5% in FY2025-26, while reliance on financing from the State Bank of Pakistan had reduced significantly.
Broader fiscal reforms
Schehzad said the debt management programme formed part of wider fiscal reforms aimed at strengthening Pakistan’s macroeconomic fundamentals.
He said the reforms were being implemented alongside moderate inflation, stronger fiscal and external balances, improved public financial management and broader macroeconomic stability.
According to the adviser, Pakistan was shifting from conventional borrowing towards proactive balance-sheet management, reducing rollover risks and promoting longer-term debt sustainability.
“This is disciplined debt management — delivering lower risk, lower costs, and stronger public finances,” Schehzad said in his post.
