Punjab Budget 2025-26 at a glance

Lahore, Pakistan- June 16, 2025: Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman unveiled the provincial budget for Fiscal Year 2025-26, outlining what he termed a robust plan aimed at fostering economic growth, enhancing social welfare, and ushering in an era of unprecedented development across the province.

With a total budget outlay of Rs. 5,335 billion, the budget demonstrates a clear commitment to progress, marked by significant increases in key developmental sectors.

Soaring Development Allocations Signal New Era:

A cornerstone of the new budget is the remarkable 47.2% increase in the Development Budget, which now stands at an impressive Rs. 1,240 Billion, up from Rs. 842 Billion in the previous fiscal year. This substantial allocation underscores the government’s aggressive approach to accelerating infrastructure projects, social programs, and economic initiatives. Foreign-funded projects and programs are set to receive Rs. 171.7 Billion, indicating strong international partnerships in Punjab’s development journey.

Key Sectoral Highlights and Major Initiatives:

The budget lays out ambitious plans across various vital sectors:

• Education: With a 21.2% increase, the Education Sector Budget Outlay reaches Rs. 811.8 Billion. Major initiatives include the Honhaar Scholarship Program (Rs. 15 Billion), establishment of Schools of Eminence in 36 Districts (Rs. 5 Billion), and significant allocations for additional classrooms and missing facilities (Rs. 40 Billion), ensuring a brighter future for Punjab’s youth.
• Health: The Health Sector sees a commendable 17% increase, with an outlay of Rs. 630.5 Billion. Prominent programs include the Maryam Nawaz Clinic on Wheels (Rs. 3.5 Billion), Universal Health Insurance Program (Rs. 25 Billion), and the CM Children Heart Surgery Program (Rs. 3.2 Billion), aiming to provide accessible and quality healthcare to all citizens. Additionally, major hospital projects like the Nawaz Sharif Institute of Cancer Treatment & Research, Lahore (Rs. 14.5 Billion), and Nawaz Sharif Medical District, Lahore (Rs. 61.3 Billion) are set to revolutionize medical facilities.
• Agriculture: Boosting the backbone of Punjab’s economy, the Agriculture Budget Outlay rises by 10.7% to Rs. 129.8 Billion. Key initiatives include CM’s Program for Water Efficient Agriculture (Rs. 2 Billion), CM Tractor Program (Rs. 15.5 Billion), and the ambitious Green Pakistan Initiative (Rs. 20 Billion), focusing on sustainable agricultural practices and mechanization. The Promotion of Shrimp Farming in Muzaffargarh (Rs. 8.34 Billion) also stands out.
• Housing & Urban Development: A significant focus on housing is evident with the “Apni Chhat Apna Ghar” program receiving Rs. 150 Billion. Furthermore, substantial funds are allocated for the “Chief Minister’s Saaf Pani Program (Rs. 5 Billion)” and Waste Water Treatment Plants in Lahore (Rs. 73 Billion), aiming to improve living standards and urban infrastructure.
• Digital Punjab: Embracing the digital era, the budget allocates Rs. 5 Billion for the establishment of CM IT Park and Rs. 175 Million for AI and Emerging Technologies for Governance, alongside CM IT Internship Program (Rs. 180 Million), positioning Punjab as a hub for technological advancement.
• Infrastructure & Transport: The development of mass transit systems in Faisalabad, Lahore & Gujranwala receives Rs. 30 Billion. The Chief Minister’s Local Roads Program (Rs. 50 Billion) and the E-Taxi Scheme (Rs. 3.5 Billion) are set to improve connectivity and modernise transport networks. A substantial Rs. 46 Billion is allocated for Electric Buses across Punjab, demonstrating a commitment to sustainable transport.
• Climate Change: A proactive approach to environmental challenges is seen with the Establishment of Climate Observatory in Punjab (Rs. 3 Billion) and the Environment Protection Force in 10 Zones of Punjab (Rs. 1.94 Billion).
• Social Welfare: The budget introduces impactful social safety nets such as the CM Himmat Card Program for Persons with Disabilities (Rs. 4 Billion) and the Maryam Nawaz Social Security Rashan Card (Rs. 40 Billion), ensuring support for vulnerable segments of society.

Fiscal Responsibility and Employee Welfare:

The budget maintains fiscal prudence with an estimated budget surplus of Rs. 74 Billion. Recognizing the dedication of government employees, the budget also includes a 10% increase in salary and a 5% increase in pension, a move widely welcomed.

The Punjab Finance Minister emphasized that this budget is not just a financial document but a roadmap towards a prosperous and inclusive Punjab, focusing on sustained growth, social equity, and improved quality of life for all its citizens.