The Punjab government has announced the full repayment of a massive Rs675 billion bank debt, calling it a “historic milestone” in the province’s financial history. The debt — which had been accumulating for over three decades — was primarily tied to wheat procurement and subsidy schemes.
Officials said the repayment will save the province around Rs250 million in daily interest payments and mark the end of Punjab’s dependence on domestic bank loans. The move will also free up billions annually for development and public welfare projects.
Chief Minister Maryam Nawaz, Chief Secretary Zahid Zaman, and Finance Secretary Mujahid Sherdil led the repayment drive. The last instalment, amounting to Rs13.8 billion, was paid to the National Bank of Pakistan. The government rejected requests from banks to roll over the loans, opting instead for a clean break from decades of debt.
According to officials, without this repayment, the province would have faced monthly interest charges of Rs500 million. The provincial government hailed the move as a “new example of financial self-reliance,” saying the savings will now be channelled into public service and infrastructure development.
