K-P's debt surges over Rs43b in one year
Khyber-Pakhtunkhwa's total debt burden has increased by Rs43.59 billion over the past year, official data reveals. At the beginning of the current fiscal year, the province's total debt stood at Rs679.54 billion. However, by July 1, 2025, it is projected to rise to Rs723.13 billion.
As of July 1, 2024, the province had no domestic debt, and it remains free from internal borrowing to this day. The entire debt consists of external loans. At the start of the current fiscal year, the external debt was Rs679.54 billion, which is now expected to reach Rs723.13 billion by the beginning of the next fiscal year.
Despite the rising debt, the provincial government has repaid Rs30.70 billion in loans during the ongoing fiscal year. Originally, the government had planned to repay Rs67 billion — Rs40 billion in principal and Rs27 billion in interest. However, revised estimates indicate that only Rs55 billion was paid, comprising Rs35 billion in principal and Rs20 billion in interest.
For the upcoming fiscal year, the government has planned debt repayments totaling Rs65 billion — Rs40 billion in principal and Rs25 billion in interest.
The largest portion of the province's debt is owed to the Asian Development Bank (ADB), totaling Rs323.63 billion, followed by Rs307 billion owed to the International Development Association (IDA). The remaining debt is owed to other international financial institutions.
It may be recalled that in 2021, the province's debt stood at Rs295.96 billion. It rose to Rs359.33 billion in 2022, jumped to Rs530.72 billion in 2023, and has now reached Rs723.13 billion — a more than doubling of the debt burden in just four years.
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