LAHORE (Dunya News) - The Punjab government has completely cleared all loans taken from local banks, freeing the province from debt for the first time in over three decades.
The government repaid a total of Rs 675 billion borrowed primarily for wheat procurement and subsidies. This decisive action eliminates the burden of Rs 25 crore in daily interest payments that had been draining public resources.
According to officials, the final installment of Rs 13.8 billion was paid to the National Bank of Pakistan, formally closing the chapter on these long-standing loans.
The Punjab government also rejected all rollover requests from banks, as reported, choosing instead to end its dependence on borrowed funds.
Sources noted that if these payments had been delayed, the province would have faced an additional monthly interest expense of Rs 500 million. By making timely repayments, the government has not only achieved financial independence but also opened the door to redirecting public funds toward welfare and development projects.
This milestone is being hailed as a major step toward fiscal discipline and improved governance. It is expected to provide greater budgetary flexibility in the upcoming fiscal cycle, allowing more space for public welfare initiatives.