Punjab’s debt has shown a significant decline, with official figures revealing a reduction of Rs 66 billion, bringing the total provincial debt down to Rs 1,691 billion. The latest data highlights a gradual improvement in the province’s financial position over recent months.
According to government statistics, Punjab’s debt stood at Rs 1,757 billion in June 2025, which has now decreased to Rs 1,691 billion by March 2026. This reduction reflects a steady downward trend in provincial borrowing and financial obligations during the fiscal period.
Further breakdown shows that an additional Rs 13.2 billion reduction was recorded between December and March alone, indicating continued efforts to manage debt levels. Officials suggest that improved financial planning and controlled borrowing have contributed to this decline.
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The report also highlights the structure of Punjab’s debt portfolio. Around 42% of the total debt is owed to international development institutions, while 20% is linked to the Asian Development Bank (ADB) and 18% is associated with China. This shows that a large portion of the province’s liabilities is tied to external financing sources.
Economists note that while the reduction in debt is a positive development, long-term fiscal stability will depend on sustained revenue growth and prudent financial management. They emphasize that managing external borrowing and improving provincial income sources will be key to maintaining this downward trend in the future.
