LAHORE – Punjab government unveiled ambitious industrial and investment roadmap in the FY2026-27 budget to accelerate economic transformation, boost exports, generate employment and reduce poverty through large-scale public and private sector investment.
Presenting the government’s industrial agenda, officials said economic growth and poverty alleviation are deeply interconnected, adding that sustainable employment, rising investment and enhanced exports remain central to improving living standards across the province.
Maryam Nawaz-led government implemented CM Punjab Asaan Karobar Card, CM Punjab Asaan Karobar, and CM Punjab Asaan Karobar Export Finance schemes during the outgoing fiscal year at a combined cost of Rs47.7 billion. Under these initiatives, more than 110,000 entrepreneurs received interest-free loans worth Rs125 billion to support business expansion and job creation.
The government rolled out the Sanati Taraqi & Export Promotion (STEP) Financing Program with an allocation of Rs193 billion. The program will provide subsidized financial support to 463 industrial projects and is expected to mobilize Rs300 billion in private investment, create 29,400 direct jobs and generate an additional export capacity of $5.6 billion. Medium and large-scale industries will be eligible for subsidized loans of up to Rs5 billion with a repayment period of 10 years.
To promote digital trade and improve global market connectivity, the government allocated Rs700 million for E-Biz and E-Commerce Readiness initiatives. The program aims to establish e-commerce hubs and strengthen online business infrastructure. Officials said digital transactions worth Rs6.9 billion have already been facilitated under the initiative. Four dedicated e-commerce centers will support 2,000 businesses in accessing international markets, with annual export activity expected to increase by $24.5 million.
The horticulture and floriculture sectors will also receive targeted support through the STEP program, with Rs300 million allocated for the development of cold chain systems and supply logistics. More than 100 floriculture enterprises are expected to benefit from the initiative.
In Sheikhupura, the government established a Garment City at the Quaid-e-Azam Business Park with an investment of Rs4 billion to provide modern infrastructure to the textile sector. Additionally, a Rs6 billion project for the development of Allama Iqbal Industrial City in Faisalabad has been included in the next fiscal year’s development portfolio.
Officials said the broader Economic Transformation of Punjab plan envisions total investment of Rs783.8 billion over the next three fiscal years to promote an industry-led economy. This includes Rs403.8 billion in public sector investment and an estimated Rs380 billion in private sector investment. The government expects the initiative to significantly expand employment opportunities, increase incomes, strengthen exports and reduce poverty.
To encourage value addition and export growth, the government plans to establish Plug & Play Factory Parks in the garments sector at a cost of Rs13.3 billion during FY2026-27. The project is expected to generate additional exports worth $300 million annually, create 20,000 jobs and facilitate the establishment of more than 40 new garment units.
In the footwear and leather sector, projects worth Rs4.6 billion will be launched, including a Waste Water Treatment Plant in Kasur, Common Facility Centres and Testing Laboratories. These initiatives are expected to enable more than 100 tanneries to meet international standards and generate up to $300 million in additional exports. The pharmaceutical sector will also receive a boost through the establishment of a Rs2 billion Bio-Equivalence Laboratory.
Punjab government is also introducing reforms aimed at improving ease of doing business and enhancing competitiveness. Under the Chief Minister’s business-friendly Zero Time to Start-up Policy, a Unified Inspection Regime will consolidate inspection systems of more than 15 departments into a one-window mechanism. Officials said the move would reduce regulatory compliance costs for businesses by 40 to 60 percent while removing unnecessary hurdles for exporters.
To attract investment in Special Economic Zones (SEZs), the government is introducing a new Land Lease Policy under which lease rates will range from Rs50,000 to Rs200,000 per acre per month. Discounts of up to 40 percent will be offered for environmentally friendly production, export-oriented industries and investment in underdeveloped regions. The policy is expected to attract nearly Rs1.995 trillion in investment.
The government also announced several sector-specific initiatives. In the sports goods sector, Rs5.5 billion will be spent on FIFA, ICC and ITF-standard testing facilities and certification programs, benefiting more than 1,000 exporters and generating an estimated $100 million in additional exports.
Cutlery and hand tools sector will receive Rs4 billion for the establishment of an Arts & Crafts Village and technology upgradation support, expected to create 2,500 new jobs and increase exports of value-added products. In the ceramics sector, the Gujrat Institute will be upgraded with modern kilns and testing facilities at a cost of Rs250 million, while a Rs700 million Material Testing Lab will be established in Sambrial for the fans industry to facilitate access to European and other regulated markets.
To further strengthen industrial infrastructure, the government has allocated Rs35 billion under the Industrial Estates Development Program for the development of industrial estates in Faisalabad, Vehari, Rahim Yar Khan and Bahawalpur. The initiative is expected to facilitate more than 1,000 new industrial units, attract Rs80 billion in private investment and create over 40,000 jobs. Rs20 billion has been earmarked for the Cluster Infrastructure Development Program, under which machinery and basic infrastructure in export clusters will receive 100 percent financial support.
To ensure environmentally sustainable industrial growth and compliance with international standards, the government will also introduce a Combined Effluent Treatment Plant Package worth Rs25 billion. The initiative will create wastewater treatment capacity of 70 MGD across four industrial estates.
The province also plans to capitalize on its mineral resources through the CM Punjab Value Addition Financing for Pink Salt Program, for which Rs1.5 billion has been proposed. The initiative will provide concessional financing to 200 mineral and industrial enterprises associated with the pink salt industry.
Punjab Budget 2026–27 brings 7pc Salary Increment for Govt Employees
