Pahang aims to repay federal loans by 2027, three years ahead of schedule, as state finances strengthen with a 55% rise in annual repayments.
KUANTAN: The Pahang government has formulated a long-term strategy to enable earlier repayment of its loans to the federal government.
Menteri Besar Datuk Seri Wan Rosdy Wan Ismail said it includes starting repayments in 2027 for loans originally scheduled to be settled in 2030.
“This advance repayment is a proactive measure which demonstrates the sustainability of the state budget, which has been crafted with a long-term vision,” he said when winding up the debate on the 2026 state budget.
He added that the state’s financial position is strengthening, with loan repayments rising 55% from RM39.4 million in 2024 to RM61.2 million this year.
Wan Rosdy clarified that the state’s total loan amount stands at nearly RM1 billion.
He explained that this figure includes borrowings by agencies, local authorities and state statutory bodies, not just the state government.
Only RM755 million of the total is serviced through the state’s operating budget, with the remaining RM304 million borne by the respective agencies.
The state government has also acted as a lender, extending a total of RM46 million to state agencies and statutory bodies.
On water supply, Wan Rosdy said 23% of the state’s 15,423-kilometre pipeline network consists of ageing asbestos cement pipes.
These obsolete pipes are a major cause of frequent bursts and contribute to high non-revenue water levels.
He said Pengurusan Air Pahang Berhad has replaced 259.7 kilometres of obsolete pipes in 2025 alone.
The ideal replacement of the entire network would cost about RM3 billion, so works will continue in phases.
The Pahang Budget 2026 was approved by a majority vote at the State Assembly sitting. – Bernama
