Khyber Pakhtunkhwa’s provincial government has borrowed over Rs 809 billion in the first six months of the current fiscal year, according to official documents from the Finance Department. The records reveal that the provincial administration obtained loans for a total of 102 development projects, pushing the overall borrowing beyond the Rs 809 billion mark.
The World Bank emerged as the largest lender, providing Rs 352.5 billion for 46 projects. Similarly, the Asian Development Bank extended loans worth Rs 351.8 billion for 44 development projects across the province. Between July and December, the provincial government disbursed Rs 25.56 billion toward repayment of loans and interest.
Out of this, Rs 15.81 billion was used to settle principal amounts, while Rs 9.75 billion was paid in interest. KP Finance Advisor Mazammil Aslam commented that the budget had initially estimated Rs 180 billion in borrowing. He clarified that these loans pertain to previously signed agreements and are intended for ongoing development projects in the province.