Punjab Records Historic Surge in Borrowing Under CM Maryam Nawaz: Rs405 Billion in 38 Days
Lahore: Punjab has emerged as the largest borrowing province in the country during the ongoing fiscal year, with the provincial government securing a massive Rs405 billion loan from the State Bank of Pakistan in just 38 days (from July 1 to August 8, 2025).
The borrowing far surpasses that of other provinces, raising concerns among financial experts about its long-term impact on the province’s economic structure. During the same period, Sindh borrowed Rs16 billion, Khyber Pakhtunkhwa Rs21 billion, and Balochistan only Rs13 billion — making Punjab’s borrowing nearly 25 times higher.
Experts note that while the federal government is restricted from borrowing directly from the State Bank due to IMF conditions, provincial governments continue to rely heavily on the central bank for financing.
At the same time, the Punjab government has announced that it has cleared Rs675 billion worth of decades-old bank loans, primarily linked to wheat procurement and subsidy programs. Officials described this as a historic move, as it has eliminated the burden of paying Rs250 million in daily interest, freeing up resources for public welfare projects.
According to officials, the final installment of Rs13.8 billion was paid to the National Bank of Pakistan, with all requests for rolling over the loans rejected. Had the repayment not been made, Punjab would have faced an additional Rs500 million in monthly interest costs.
Meanwhile, provincial state-owned enterprises continue to operate at a loss and were forced to borrow Rs65 billion from commercial banks just to sustain operations. Their cumulative debt has now surpassed Rs2.16 trillion.
On the federal side, the government made a repayment of Rs55 billion to the State Bank within its limited capacity, reducing its total outstanding debt to Rs5.27 trillion by June 30, 2025.
