Punjab government clears 31-year-old wheat debt

The Punjab government has fully repaid a 31-year-old wheat commodity debt, settling the final instalment of Rs. 13.8 billion to the National Bank of Pakistan. In total, Rs. 675 billion has been paid off, marking a significant milestone in the province’s path to financial autonomy.

According to Punjab Finance Secretary Mujahid Sherdil, failure to make timely payments would have cost the province Rs. 500 million in daily interest. With the debt cleared, the government now has full ownership of its wheat reserves.

Officials credit Chief Minister Maryam Nawaz’s fiscal discipline and decisive leadership for eliminating the decades-old burden. The high-cost wheat procurement policy not only inflated flour and bread prices for consumers but also disproportionately benefited a few farmers.

Had the practice continued, the debt was projected to reach Rs. 1.15 trillion by June 2024—35% of Punjab’s annual budget. Instead, Rs. 761 billion was allocated from the provincial budget to end the cycle.

The government calls this a landmark example of good governance and sound financial management.