Pakistan has retired Rs4.722 trillion (around $17 billion) in public debt before its scheduled maturity, completing the largest liability management exercise in the country’s history.

The record was reached after the government’s latest Pakistan Investment Bond (PIB) buyback of Rs279 billion (approximately $1 billion), bringing total early debt retirement since October 2024 to Rs4.722 trillion.

The repayments were carried out under the government’s active liability management programme, which allows outstanding debt to be repurchased before maturity to improve the overall debt portfolio rather than simply meeting scheduled repayments.

In FY2025-26, the government retired Rs2.9 trillion in debt ahead of schedule, up 62% from Rs1.8 trillion in the previous fiscal year. The operation included both central bank and market borrowings.

Officials said the strategy has lengthened the average maturity of government debt from 2.7 years in FY2023-24 to more than 3.8 years in FY2025-26, helping reduce refinancing risks and future rollover pressures.

At the same time, Pakistan’s debt-to-GDP ratio has declined from 75% in FY2022-23 to an estimated 68.5% in FY2025-26, while dependence on central bank financing has also fallen.

The government says the liability management programme is designed to lower borrowing costs, improve cash management, strengthen fiscal resilience, and support long-term debt sustainability amid improving macroeconomic conditions.