Finance Retires PKR 1.1T SBP Debt Load

Islamabad, August 30, 2025, 09:50 PM PKT — The Ministry of Finance has executed a bold debt retirement, paying off more than PKR 1.1 trillion in debt held with the State Bank of Pakistan (SBP), slashing SBP-held government debt by approximately 30% in less than two months, reducing the total from PKR 5.5 trillion to PKR 3.8 trillion, as per official reports. This strategic move bolsters fiscal management and tackles long-term economic challenges, easing concentration risk from a massive single-day maturity in June 2029 that threatened a liquidity bottleneck.

The repayment spreads out the maturity schedule, lowering crisis risks and aiming to enhance investor confidence while improving future debt management. Web context on debt reduction shows past struggles, while posts found on X reflect relief mixed with skepticism—some praise progress, others question sustainability. Critically, the narrative of “financial stability” may mask underlying pressures—web data hints at past reliance on debt, and X sentiment suggests distrust in long-term gains, pointing to potential challenges.