The budget documents for the fiscal year 2024–25 state that a number of development initiatives slated for the upcoming fiscal year will be significantly reliant on outside finance. To fund these projects, the federal and provincial governments have chosen to accept an external loan of Rs932 billion.
The four provinces will obtain a total of Rs616 billion in external loans, while the federal government intends to borrow Rs316 billion. With a planned loan of Rs334 billion, Sindh is expected to absorb the biggest chunk, underscoring the state’s heavy reliance on outside financing for its development goal.
Khyber Pakhtunkhwa’s development initiatives will be financed in part by an external debt of Rs. 131 billion. In the upcoming fiscal year, Punjab is expected to obtain an external loan of Rs123 billion, while Balochistan would borrow Rs29 billion for its development initiatives.
