Peshawar: Borrowing in Khyber Pakhtunkhwa has exceeded Rs809 billion during the first six months of the current fiscal year, drawing attention to the province’s financial position.
According to Finance Department documents, the provincial government secured loans for a total of 102 development projects, with significant funding obtained from international financial institutions.
The documents reveal that the largest share of borrowing came from the World Bank, amounting to Rs352.5 billion for 46 projects, while Rs351.8 billion was obtained from the Asian Development Bank for 44 projects.
It was further stated that between July and December, the government paid Rs25.56 billion in debt servicing, including Rs15.81 billion in principal repayment and Rs9.75 billion in interest payments.
Khyber Pakhtunkhwa Finance Advisor Muzammil Aslam said that the budget had estimated borrowing of Rs180 billion, but these loans are part of previously signed agreements and are being utilized for ongoing development projects.
