Punjab’s outstanding debt to domestic and international lenders declined to Rs. 1.691 trillion by March 2026, according to official financial documents, reflecting continued efforts by the provincial government to strengthen its fiscal position.
The documents show that Punjab’s total debt stood at Rs. 1.757 trillion in June 2025, indicating a reduction of approximately Rs. 66 billion over nine months. Between December 2025 and March 2026 alone, the province reduced its debt stock by Rs. 13.2 billion.
A large share of Punjab’s liabilities remains linked to international lenders. Around 42% of the province’s debt is owed to international development institutions, while nearly 20% is associated with financing from the Asian Development Bank. Another 18% consists of loans obtained from China for infrastructure and development projects.
The debt reduction comes as Pakistan continues to pursue fiscal reforms and debt management measures aimed at improving economic stability. Provincial governments are also facing increasing pressure to control spending and enhance revenue generation.
Officials from the Punjab Finance Department expressed confidence that the province’s debt burden will continue to decline by the end of the current fiscal year, citing improved financial management, disciplined borrowing practices, and stronger revenue collection efforts.
Economists believe sustained debt reduction could provide Punjab with greater fiscal flexibility, allowing more resources to be allocated toward infrastructure, education, healthcare, and other development priorities.
