• MoF says Rs1.133tr repaid on Aug 29, on top of Rs500bn cleared in June; total early repayments cross Rs2.6tr
• Central bank debt reduced to Rs3.8tr from Rs5.5tr; average domestic debt maturity rises to 3.8 years
• Falling interest rates saved Rs800bn in FY25, easing taxpayer burden

ISLAMABAD: The government on Sunday said it had retired about Rs1.133tr debt to the State Bank of Pakistan (SBP), taking advantage of the central bank’s record profits driven by the highest interest rates in the country’s history.

“On August 29, 2025, the Debt Management Office (of the Ministry of Finance) executed another monumental repayment of Rs1.133 trillion,” the Ministry of Finance (MoF) said in a statement, adding that this came on top of an earlier Rs500bn repayment on June 30, 2025. The total repayment, therefore, amounted to Rs1.633tr in just 59 days, and Rs2.6tr in about a year.

The government had earlier announced in November last year that it had retired Rs1.867tr against a borrowing of Rs753.2bn for budgetary support in FY2023-24 through earlier repayments and buybacks of its securities from the market.

“The MoF had, in the first half of FY25, retired domestic commercial market debt of Rs1tr — the first such advanced........

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