Islamabad 9 August: The Punjab government has announced the complete repayment of a long-standing bank debt totaling Rs 675 billion, a burden that had persisted for over 30 years. This marks a historic milestone in the province’s financial management.
The debt, incurred mainly for wheat procurement and subsidy programs, has been fully settled with the final installment of Rs 13.8 billion paid to the National Bank of Pakistan. Officials highlighted that this settlement eliminated the daily interest outflow of Rs 250 million.
If the loans had continued to be rolled over, the province would have incurred interest costs of up to Rs 500 million per month. The government decisively declined all rollover requests, opting instead for timely repayment.
The aggressive repayment strategy was led by Punjab Chief Minister Maryam Nawaz, along with Chief Secretary Zahid Zaman and Finance Secretary Mujahid Sherdil.
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Authorities described the move as a step toward “financial self-reliance” and “historic improvement” in the province’s fiscal stability.
- With the debt cleared, the substantial funds previously tied up in interest payments are now set to be redirected toward public welfare and development projects.
Summary Table
| Aspect | Details |
|---|---|
| Debt Cleared | Rs 675 billion (long-term borrowing) |
| Final Payment | Rs 13.8 billion to NBP |
| Daily Interest Saved | Rs 250 million |
| Potential Monthly Interest | Up to Rs 500 million |
| Leadership | Maryam Nawaz, Zahid Zaman, Mujahid Sherdil |
| Redirected Funds | Public welfare & development |
This pivotal decision not only ends a decades-old financial liability but also positions Punjab to reinvest in its people, infrastructure, and socio-economic well-being.
