The Punjab government has achieved a major financial milestone by completely clearing a 31-year-old wheat commodity loan. The total repayment amounted to Rs 675 billion, with the final installment of Rs 13.80 billion recently paid to the National Bank of Pakistan.
This debt dated back decades and was the result of costly wheat procurement policies that placed a long-term burden on the province’s finances. The large interest payments had been a significant strain, costing Punjab around Rs 500 million every month.
Under the leadership of Chief Minister Maryam Nawaz, the government implemented strict financial discipline and introduced reforms to improve budget management. These measures made it possible to finally settle the loan, ending years of financial pressure linked to wheat purchases.
With this repayment, Punjab now has full ownership of its wheat reserves without any bank liabilities. This move not only frees up resources for other development projects but also prevents the debt from growing to an estimated Rs 1.15 trillion by mid-2024 if left unpaid.
Officials say this step marks a turning point in provincial fiscal management and demonstrates the effectiveness of responsible economic policies. It also sends a strong message about the government’s commitment to reducing debt and ensuring financial stability.
The repayment is being seen as an example for other provinces, showing how disciplined financial planning can resolve even decades-old liabilities while strengthening long-term economic security.
