Punjab Borrows Rs753bn For Budgetary Support In First Seven Weeks.
✧ GENERATE BRIEFING +
Punjab’s bank borrowing for budgetary support more than doubled during the first seven weeks of fiscal year 2026-27, surging by over 145% year-on-year to reach Rs753.4 billion, according to the latest data released by the State Bank of Pakistan (SBP). This compares to Rs306.8 billion borrowed during the corresponding period of the previous fiscal year. Notably, Punjab’s borrowing surpassed that of the federal government, which stood at Rs571 billion between July 1 and August 21. In contrast, other provinces exhibited varied fiscal positions: Sindh maintained deposits of Rs69.6 billion, Balochistan held Rs43.4 billion, and Khyber Pakhtunkhwa borrowed a nominal Rs1.8 billion.The sharp rise in borrowing highlights acute liquidity pressures as Punjab attempts to balance development outlays, recurrent expenditures, and its commitment to deliver a budgeted Rs910 billion cash surplus within its Rs5.9 trillion total budget framework.
Punjab’s borrowing from banks for budgetary support more than doubled during the first seven weeks of fiscal year 2026-27, reaching Rs753.4 billion, according to the latest data from the State Bank of Pakistan (SBP).
The province borrowed Rs306.8 billion during the same period last year. This means borrowing increased by more than 145% year-on-year, highlighting growing liquidity pressures on Pakistan’s largest province.
Punjab’s borrowing was also higher than that of the federal government. The Centre borrowed Rs571 billion from banks for budgetary support between July 1 and August 21, compared with Punjab’s Rs753.4 billion.
Other provinces recorded substantially different positions. Sindh had deposits of Rs69.6 billion with the SBP, while Balochistan held Rs43.4 billion. Khyber Pakhtunkhwa, meanwhile, borrowed only Rs1.8 billion during the period.
The increase comes amid Pakistan’s fiscal arrangement under which provinces are required to generate surpluses and contribute to the federal government’s financing requirements. Provincial governments, however, remain heavily dependent on federal transfers, which account for as much as 78% of their revenues.
Punjab had projected a Rs910 billion cash surplus in its FY27 budget, with the province’s total budget outlay set at around Rs5.9 trillion.
The figures highlight the pressure on provincial finances and raise questions about the sustainability of Punjab’s fiscal position as the government balances development spending, recurrent expenditures and its obligations under the federal-provincial fiscal framework.
