Punjab Repays Rs675B Debt, Ends Interest Burden

Lahore, August 10, 2025, 06:33 PM PKT — The Punjab government has achieved a historic financial milestone, announcing the full repayment of a Rs675 billion bank debt—a 30-year burden—on Saturday, as reported by The Express Tribune, with officials hailing it as a landmark move to unlock funds for public development. The debt, largely linked to wheat procurement and subsidy programmes, ends a daily interest outflow of Rs250 million, redirecting billions annually to welfare and development projects. Led by Chief Minister Maryam Nawaz, Chief Secretary Zahid Zaman, and Finance Secretary Mujahid Sherdil, the final Rs13.8 billion instalment was paid to the National Bank of Pakistan, rejecting all lender rollover requests, averting a potential Rs500 million monthly interest spike.

The provincial government declared this debt clearance a new precedent for financial self-reliance, promising a historic fiscal improvement and a shift from bank borrowing to public welfare focus. Web context on debt repayment shows mixed fiscal outcomes, while posts found on X reflect pride and skepticism—some celebrate self-reliance, others question sustainability. Critically, the narrative of “fiscal freedom” may mask future pressures—web data hints at past borrowing patterns, and X sentiment suggests distrust in long-term stability, pointing to potential risks.