Punjab’s debt crisis deepens as CM Maryam Nawaz’s government borrows Rs. 405 billion in 38 days, sparking backlash over lavish Japan trip and calls to slash non-development budgets.
Courtesy: Pro Pakistani
LAHORE (Mediabites) — In just 38 days of the new fiscal year, Punjab’s borrowing has ballooned by an alarming Rs. 405 billion from the State Bank of Pakistan — raising tough questions about financial management under Chief Minister Maryam Nawaz.
According to official figures, Punjab borrowed more than 20 times higher than Sindh and 25 times higher than Balochistan during the same period. Sindh took Rs. 16 billion, Khyber Pakhtunkhwa Rs. 21 billion, and Balochistan Rs. 13 billion, while Punjab alone crossed Rs. 405 billion.
Debt repaid, debt re-added
While the Punjab government hailed the repayment of a Rs. 675 billion long-standing wheat procurement loan as a “historic step,” critics argue that new borrowing has already negated the achievement. The government says this repayment has saved Rs. 250 million in daily interest payments, yet the question remains — who will shoulder the fresh Rs. 405 billion?
Backlash amid Japan visit
The debate over fiscal responsibility is growing louder as Maryam Nawaz recently led a 30-member delegation to Japan, triggering criticism over lavish spending at a time when the province is drowning in debt. Opposition leaders and analysts are asking why non-development expenditures remain untouched, while debt levels spiral upward.
READ MORE: Maryam Nawaz’s Japan trip sparks backlash over PAF jet, lavish spending
SOEs bleeding, governance questioned
Adding to the burden, Punjab’s state-owned enterprises borrowed another Rs. 65 billion from commercial banks to survive, with their combined debt crossing Rs. 2,166 billion. Observers argue that rather than expanding administrative costs and foreign tours, the government should prioritize cutting losses in SOEs and redirecting funds toward development.
The big question
While the federal government managed to repay Rs. 55 billion to the State Bank, Punjab raced in the opposite direction. Economists warn that unchecked provincial borrowing, coupled with weak governance, could eventually deepen Pakistan’s overall debt crisis.
As Punjab celebrates symbolic achievements, critics are asking:
👉 Should CM Maryam Nawaz slash non-development budgets to ease pressure?
👉 Or will the people of Punjab ultimately be left to pay the price for the mammoth loans?
