For the first time in its history, Pakistan has repaid Rs2.6 trillion in loans ahead of schedule. According to Adviser to the Finance Minister Khurram Shehzad, the Finance Ministry paid back Rs1.633 trillion to the State Bank in just 59 days.
This amount 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 Rs2.6 trillion in less than a year.
Shehzad stated that this early repayment has strengthened financial stability and boosted investor confidence. The State Bank’s debt has decreased from Rs5.5 trillion to Rs3.8 trillion, marking a 30 percent reduction in overall debt.
He further mentioned that the average maturity period of loans has increased from 2.7 years to 3.8 years, which is the biggest improvement in Pakistan’s history. The government has also gained over Rs800 billion in tax revenues. Shehzad concluded that Pakistan has set a new precedent by repaying debt instead of relying on fresh borrowing.
