Islamabad: Pakistan has repaid a debt of approximately Rs4722 billion ahead of schedule, marking a significant development in the country’s financial management, as announced by Khurram Schehzad, Adviser to the Finance Minister. This repayment is seen as a critical step in enhancing Pakistan’s fiscal discipline and economic stability.

According to Radio Pakistan, Khurram Schehzad highlighted in a statement that effective financial policies and improved debt management strategies have been instrumental in achieving this milestone. During the financial year 2025-26 alone, Pakistan managed to repay Rs2900 billion worth of debt before its maturity, a figure that is 62 percent higher compared to the previous financial year.

The repaid debt comprises 51 percent borrowings from the State Bank of Pakistan and 49 percent from other financial institutions. Schehzad also noted a decline in the country’s debt-to-GDP ratio from 75 percent to approximately 68.5 percent, indicating an improvement in Pakistan’s financial standing.

The Finance Minister’s Adviser emphasized that the enhanced debt management strategy has boosted investor confidence and further consolidated economic stability. He added that Pakistan is on a path towards establishing a stronger, more sustainable, and lower-cost financial system through improved debt management practices.