In a landmark financial decision, the Punjab government has cleared its decades-old bank debt of Rs675 billion, much of it linked to wheat procurement and subsidies. Officials say the repayment marks the first time in over 30 years that the province is free from domestic bank borrowing.
The repayment eliminates daily interest costs of Rs250 million and is expected to save billions annually, which will now be redirected toward public welfare and development. Chief Minister Maryam Nawaz, Chief Secretary Zahid Zaman, and Finance Secretary Mujahid Sherdil were credited with spearheading the effort.
The final instalment — Rs13.8 billion — was paid to the National Bank of Pakistan, with the government refusing all requests from lenders to roll over the loans. Without repayment, the province would have continued paying up to Rs500 million in monthly interest.
A government statement said the move has brought “historic improvement” to Punjab’s finances, setting a precedent for fiscal discipline and financial self-reliance. “The chapter on bank loans is closed. Now resources will be spent on the welfare of the people,” it read.