LAHORE – Punjab Finance Minister Mujtaba Shuja ur Rehman unveiled Rs5,335 billion budget for the fiscal year 2025-26, with focus on development and public welfare. CM Maryam Nawaz led government approved 47% increase in the Annual Development Programme (Rs1,240 billion), while keeping government operational expenses nearly flat with only a 3% rise.
Provincial authorities called it reform-oriented, people-friendly budget with no new taxes or tax rate increases, focusing instead on expanding the provincial tax base.
Punjab Budget 2025-26
Funding for Sectors
| Sector | Allocation |
|---|---|
| Total Budget Size | Rs 5.3 trillion |
| Development Budget | Rs 1,240 billion (47% +) |
| Non-Development Expenditure | Rs 2,706 billion |
| Federal Transfers Expected | Rs 4,062 billion |
| Provincial Revenue Target | Rs 828.2 billion |
| Foreign Funding & Loans | Rs 97.9 billion |
| EPS Allocation (IMF/Federal) | Rs 740 billion |
| Salary & Pension Increments | 10% salary hike; 5% pension increase |
| Local Governments (PFC) | Rs 764.2 billion |
| Social Protection | Rs 70 billion |
| Foreign-Funded Projects | Rs 171.7 billion |
| Electric Buses | Rs 310 billion |
| Non-Development Education | Rs 661 billion |
| Punjab Laptop Scheme | Rs 37 billion (112,000 laptops:
Rs 27B for universities, Rs 10B for colleges) |
| Merit-Based Scholarships | Rs 15 billion |
| Student Stipends | Rs 4.5 billion |
| Punjab Education Foundation | Rs 35 billion |
| School Education | Rs 100 billion |
| Higher Education | Rs 39.5 billion |
| Special Education | Rs 5 billion |
| Literacy & Non-Formal Education | Rs 4 billion |
| Total Health Budget | Rs 631 billion |
| – Development (Health)** | Rs 181 billion |
| – Non-Development (Health)** | Rs 450 billion |
| Nawaz Sharif Institute of Cardiology (Sargodha) | Rs 2.6 billion |
| Jinnah Institute of Cardiology (Lahore) | Included |
| Nawaz Sharif Medical District | Rs 109 billion |
| Maryam Nawaz Health Clinics | Rs 9 billion |
| Community Health Programme | Rs 12.6 billion |
| Nawaz Sharif Cancer Institute | Rs 14 billion released + Rs 12 billion new |
| Emergency Ambulance (Motorways) | To be launched |
| Road Construction | Rs 120 billion |
| Urban Development | Rs 145 billion |
| Irrigation | Rs 38 billion |
| Energy Sector | Rs 7.5 billion |
| Public Buildings | Rs 25 billion |
| Lahore Canal Road Train | Proposed project |
| Gujranwala Metro Bus | Proposed project |
| Punjab Revenue Authority (PRA) | Rs 340 billion |
| Board of Revenue | Rs 135.5 billion |
| Mines and Minerals | Rs 30 billion |
| Stance on Israel | Condemned Israeli actions in Gaza |
Punjab Information Minister Azma Bokhari said budget 2025 is tax-free, with increased salaries and pensions for government employees.
The government plans major infrastructure work in 64 cities and aims to develop 1,800 villages to urban standards, Bokhari said, highlighting Chief Minister’s strict oversight on food prices, including the creation of a dedicated department for price control and a zero-tolerance policy on inflation.
Salaries Up 10%, Pensions Raised by 5% in Punjab Budget 2025
