The Punjab government announced on Saturday that it has fully repaid a long-standing bank debt of Rs675 billion, ending a financial obligation that had persisted for over 30 years. Officials described the move as a landmark achievement that will release significant funds for public development initiatives. As reported by The Express Tribune.
Much of the debt was tied to wheat procurement and subsidy programmes. Its clearance will eliminate the daily interest outflow of Rs250 million, allowing the province to redirect billions of rupees annually towards welfare and development projects.
The repayment drive was spearheaded by Chief Minister Maryam Nawaz, Chief Secretary Zahid Zaman and Finance Secretary Mujahid Sherdil. The final instalment of Rs13.8 billion was paid to the National Bank of Pakistan, with the government refusing all rollover requests from lenders. Without this timely settlement, monthly interest costs could have ballooned to Rs500 million, officials noted.
In a statement, the provincial government said the debt clearance had set “a new precedent for financial self-reliance” and brought “historic improvement” to Punjab’s fiscal position. The end of bank borrowing, it added, marks the start of a phase where resources will be channelled directly into public welfare programmes.
