Government Repays Rs3.65 Trillion Domestic Loans Before Maturity

Pakistan has achieved a historic economic milestone by repaying a substantial volume of domestic debt ahead of schedule for the first time in the country’s history.

According to the Ministry of Finance, the Government of Pakistan retired domestic loans worth Rs3.654 trillion before maturity during a 14-month period from late 2024 to January 2026. Officials described the development as unprecedented, noting that such large-scale early debt repayment has never occurred in the past.

The early retirement of debt reflects improved fiscal management and marks a significant step toward strengthening economic stability. Finance Ministry officials emphasized that the move demonstrates enhanced government capacity to manage liabilities more effectively while easing future repayment pressures.

The milestone is being viewed as a key indicator of progress in Pakistan’s broader efforts to stabilize public finances and improve economic fundamentals.

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