LAHORE – Punjab government officially declared province debt-free for first time in over three decades. A staggering Rs675 billion borrowed from local banks, mainly for wheat procurement and subsidies, and has been fully repaid, ending a long-standing financial burden that weighed heavily on the province’s economy.
With major development, Punjab is free from daily interest payments of Rs 25 crore that had been draining public coffers, saving billions annually and paving the way for a brighter future. The final payment of Rs 13.8 billion to the National Bank of Pakistan was dramatic conclusion to decades of debt.
Rejecting all rollover requests from banks, Punjab’s leadership has taken strong stand against dependency on borrowed money, signaling a new era of fiscal responsibility and self-reliance.
Experts warn that any delay could have forced province to pay an additional Rs 500 million per month in interest, costs that have now been completely avoided. This historic repayment frees up vital funds that can now be redirected towards welfare programs, development projects, and public services.
Those familiar with it hailed this milestone as game-changer for Punjab’s governance, promising greater budgetary freedom and the chance to finally put public welfare at the forefront of the government’s agenda.
