Pakistan has, for the first time in its history, repaid Rs 2.6 trillion in loans ahead of schedule. Adviser to the Finance Minister Khurram Shehzad said the Finance Ministry repaid Rs1.633 trillion to the State Bank within just 59 days.
It included Rs500 billion in June and Rs1.133 trillion in August.
He added that Rs1 trillion borrowed from the commercial market was also cleared in the first half of 2025, bringing the total loan repayment to Rs 2.6 trillion in less than a year.
According to Shehzad, this early repayment has strengthened financial stability and boosted investor confidence. The State Bank’s debt has fallen from Rs 5.5 trillion to Rs 3.8 trillion, marking a 30 percent reduction in overall debt.
He further stated that the average maturity period of loans has increased from 2.7 years to 3.8 years, the biggest improvement in Pakistan’s history. The government has also gained over Rs 800 billion in tax revenues. Shehzad said Pakistan has set a new precedent by repaying debt instead of relying on fresh borrowing.
