Khyber Pakhtunkhwa’s provincial debt is climbing at an alarming pace, with an average increase of Rs 5.5 billion every month, according to official records.
Data shows that in the last six months, the province’s debt rose by Rs 33.42 billion, pushing total liabilities to Rs 809.74 billion. For comparison, the provincial debt in June 2025 was Rs 776.32 billion.
Despite making repayments, the borrowing trend remains upward:
- Rs 25.56 billion was repaid during the period, including Rs 15.81 billion in principal and Rs 9.75 billion as interest.
- At the same time, the province secured new loans totaling Rs 45.9 billion, outpacing repayments.
Loans fuel development projects
The provincial government is currently funding 30 development projects through foreign loans.
- World Bank loans contribute Rs 352.5 billion for 46 projects.
- Asian Development Bank loans total Rs 351.8 billion for 44 projects.
These loans are primarily aimed at infrastructure, social development, and economic growth, but they also contribute to the growing debt burden.
