Pakistan makes largest-ever early debt repayment of Rs1.2tr

प्रकाशित: 30-08-2026 | 10:25 AM

Updated on 30 Aug 26, 12:55:34 UTC Summary Finance Minister said the latest repayment was expected to reduce the overall debt burden and ease pressure from large debt servicing obligations in the coming years ISLAMABAD (Dunya News) - Pakistan has made its largest single early debt repayment by settling Rs1.2 trillion ahead of schedule, according to Finance Minister’s adviser Khurram Shehzad. In a post on X, Mr Shehzad said the country’s total early debt repayments had now reached nearly Rs6 trillion. He said Pakistan had so far repaid around Rs5.92tr ahead of schedule, surpassing the previous record of Rs1.133tr paid in August 2025. According to the adviser, Pakistan has made early debt repayments of Rs2.9tr so far during the 2025-26 fiscal year. A further Rs1.2tr has been repaid ahead of schedule during the 2026-27 fiscal year so far, he added. Finance Minister said the latest repayment was expected to reduce the overall debt burden and ease pressure from large debt servicing obligations in the coming years. He described the development as a shift in the country’s debt management approach, saying Pakistan was moving beyond conventional repayment practices towards strengthening its overall fiscal position. Early this week, global ratings agency Moody’s lifted Pakistan’s sovereign rating to ‘B3’ from ‘Caa1’, citing improvements in governance and easing external vulnerability. “We expect the recent improvement in Pakistan’s debt affordability to be durable, underpinned by sustained macroeconomic stability,” Moody’s said.