Pakistan has retired a record Rs. 4.722 trillion (approximately $17 billion) in public debt before maturity, marking the largest early debt repayment and liability management operation in the country’s history.

The milestone was achieved following the government’s latest Pakistan Investment Bond (PIB) buyback worth Rs. 279 billion (around $1 billion), bringing the cumulative value of debt retired ahead of schedule to Rs. 4.722 trillion since October 2024.

Advisor to the Finance Minister Khurram Schehzad announced the development on Tuesday, describing it as a major step in the government’s ongoing debt management strategy.

Unlike routine repayments, the buyback programme is part of an active liability management framework aimed at reducing refinancing risks, lowering borrowing costs and improving the overall public debt profile.

During FY2025-26, the government retired Rs. 2.9 trillion in debt ahead of maturity, representing a 62 percent increase from Rs. 1.8 trillion repaid early during FY2024-25.

According to official figures, 51 percent of the retired debt consisted of liabilities owed to the central bank, while the remaining 49 percent comprised market debt.

The government’s debt management strategy has also extended the average maturity of public debt from 2.7 years in FY2023-24 to more than 3.8 years in FY2025-26, reducing the frequency of refinancing and helping strengthen debt sustainability.

Meanwhile, Pakistan’s debt burden has shown signs of improvement, with the debt-to-GDP ratio declining from 75 percent in FY2022-23 to an estimated 68.5 percent in FY2025-26, reflecting progress in fiscal and debt management.