Pakistan’s National Entities Face Enormous Debt Burden with Interest Soaring to Over 211 Billion Rupees

Pakistan’s national institutions are grappling with a staggering debt burden, as interest on loans accumulated by 14 national entities has surged to an alarming 211.55 billion rupees. Reports have revealed that these institutions collectively owe billions in principal and interest, straining their financial resources.

Among the most affected is the Pakistan Trade Corporation, which owes a staggering 305 billion rupees. Other notable institutions include Utility Stores, which borrowed 24 billion rupees, but now faces an interest charge of nearly 77 billion rupees. Similarly, National Fertilizer Corporation’s debt of 53.8 billion rupees has ballooned into 67.7 billion rupees in interest.

The provincial food departments have also been heavily impacted. The Sindh Food Department owes 8.82 billion rupees, while PASCO, which borrowed 1.15 billion rupees, is now required to pay an additional 4.88 billion rupees in interest. The Khyber Pakhtunkhwa Food Department borrowed 2.52 billion rupees, with its interest now standing at 9.66 billion rupees.

Other significant figures include the Punjab Food Department, which owes 4.68 billion rupees in principal and an additional 11.51 billion rupees in interest, and the Balochistan Food Department, which faces 6.95 billion rupees in interest on a 1.79 billion rupees loan. The Azad Kashmir government, with a loan of 230 million rupees, now faces 1.85 billion rupees in interest.

This growing financial burden underscores the severe strain on Pakistan’s national institutions and their ability to manage their debts effectively, raising concerns about the long-term sustainability of these institutions under such heavy financial pressures.