Kuantan: The Pahang government has developed a strategy for the early repayment of its loans to the federal government, as announced by Menteri Besar Datuk Seri Wan Rosdy Wan Ismail. This initiative aims to start loan repayments in 2027, three years earlier than initially planned, with the goal of reducing the state's reliance on federal financial support.
According to BERNAMA News Agency, Wan Rosdy outlined this proactive approach while concluding the debate on the 2026 state budget at the State Assembly at Wisma Sri Pahang. He emphasized that this move is part of a sustainable state budget crafted with a long-term perspective. In 2024, Pahang made loan repayments totaling RM39.4 million, a figure that increased to RM61.2 million this year, indicating a 55 percent rise and a strengthening financial position for the state.
The Menteri Besar also clarified misconceptions regarding state borrowings, highlighting that the total loan amount of nearly RM1 billion includes borrowings by agencies, local authorities, and state statutory bodies, not just those repaid by the state government. Of this total, RM755 million is serviced through the state's operating budget, while RM304 million is managed by the respective agencies.
Furthermore, the Pahang government has extended RM46 million in loans to state agencies and statutory bodies. Wan Rosdy also addressed issues related to the state's water supply, noting that 23 percent of Pahang's 15,423-kilometer pipeline network consists of ageing asbestos cement pipes, which contribute to water losses. Pengurusan Air Pahang Berhad (PAIP) has replaced 259.7 kilometers of these obsolete pipes in 2025, though full replacement would cost approximately RM3 billion and will be undertaken in phases.
The Pahang Budget 2026 received majority approval at today's sitting, following a debate involving 34 assemblymen from both government and opposition parties.