In the first 38 days of the current fiscal year (July 1 to August 8, 2025), Punjab has emerged as the largest borrower among all provinces, securing a massive Rs. 405 billion loan from the State Bank of Pakistan (SBP). This amount is nearly 25 times more than what Balochistan borrowed and over 20 times higher than Sindh’s borrowing during the same period.
According to SBP data, Sindh borrowed Rs. 16 billion, Khyber Pakhtunkhwa Rs. 21 billion, and Balochistan Rs. 13 billion in the same timeframe. This surge in provincial borrowing highlights the growing financial dependence on central bank funds, even as the federal government remains restricted from borrowing directly due to IMF conditions.
Despite these limitations, the federal government successfully repaid Rs. 55 billion to the State Bank, bringing its outstanding debt down to Rs. 5,269 billion as of June 30, 2025.
Meanwhile, financially struggling State-Owned Enterprises (SOEs) borrowed an additional Rs. 65 billion from commercial banks to cover their losses. The total outstanding debt of these SOEs has now crossed Rs. 2,166 billion, underscoring the urgent need for structural reforms.
