Pahang Sets Strategy To Fast-track Repayment Of Federal Loans - Wan Rosdy

KUANTAN, Dec 12 (Bernama) -- The Pahang government has formulated a long-term strategy to enable earlier repayment of its loans to the federal government, said Menteri Besar Datuk Seri Wan Rosdy Wan Ismail.

He said it includes starting repayments in 2027 for loans originally scheduled to be settled in 2030, thereby significantly reducing the state’s dependence on federal financial assistance.

“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 at the State Assembly sitting at Wisma Sri Pahang, here, today.

Wan Rosdy added that in 2024 the state government made loan repayments amounting to RM39.4 million, while this year the figure rose to RM61.2 million, an increase of 55 per cent, reflecting the state’s strengthening financial position.

He also addressed the issue of state borrowings, which he said is often misunderstood, noting that the total loan amount stands at nearly RM1 billion.

“The total loan amount of nearly RM1 billion does not consist solely of loans repaid by the state government, but also includes borrowings undertaken by agencies, local authorities (PBTs) and state statutory bodies.

“Of this amount, only RM755 million is serviced through the state’s operating budget, while the remaining RM304 million is borne by the respective agencies,” he said.

In addition, the state government has also acted as a lender to state agencies and statutory bodies, extending a total of RM46 million to date.

On the issue of water supply in Pahang, Wan Rosdy said that the state currently has a pipeline network spanning 15,423 kilometres, of which 23 per cent consists of ageing asbestos cement (AC) pipes. These obsolete pipes, he noted, are a major cause of frequent bursts and physical water losses, contributing significantly to the state’s high non-revenue water (NRW) level.

“For 2025 alone, PAIP (Pengurusan Air Pahang Berhad) has replaced 259.7 kilometres of obsolete pipes. Ideally, we would replace the entire network at once, but the cost is about RM3 billion. Therefore, the replacement works will continue, but in phases,” he said.

At today’s sitting, the Pahang Budget 2026 was approved by a majority vote, after 34 assemblymen from both the government and opposition blocs took part in the debate session, which began on Monday.

-- BERNAMA