For the first time in its history, Pakistan has repaid Rs 2.6 trillion in loans ahead of schedule. Adviser to the Finance Minister Khurram Shehzad announced that the Finance Ministry repaid Rs 1.633 trillion to the State Bank in just 59 days.
This repayment included Rs 500 billion in June and Rs 1.133 trillion in August.
Shehzad added that an additional Rs 1 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, which marks a 30% reduction in overall debt.
He further stated 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 Rs 800 billion in tax revenues. Shehzad said that by repaying debt instead of relying on new borrowing, Pakistan has set a new precedent.
