LAHORE – Punjab Finance Minister Mian Mujtaba Shujaur Rehman unveiled a record-breaking Rs5.3 trillion budget for the fiscal year 2025-26, marked by the highest-ever development allocation in history of country’s most populated region.
The unveiling of budget in the Punjab Assembly was disrupted by loud protests and slogan-chanting from the opposition benches, who tore up budget documents in protest.
Punjab Finance Minister Mian Mujtaba Shujaur Rehman presented the tax-free budget, announcing a 10 percent salary increase for government employees and a 5 percent hike in pensions. With a framed portrait of former Prime Minister Nawaz Sharif on his desk, Rehman declared the total development budget at Rs1,240 billion, representing a 47 percent increase over last year.
As the session commenced, opposition lawmakers attempted to move toward Chief Minister Maryam Nawaz’s seat, denouncing the budget as “unrealistic” and “politically driven.” Despite the commotion, the finance minister continued his speech and outlined key allocations across sectors.
Punjab Budget 2025 Highlights
| Category | Allocation/Details |
|---|---|
| Total Budget Size | Rs5.3 trillion |
| Development Budget | Rs1,240 billion (47% increase from last year; highest in Punjab’s history) |
| Non-Development Expenditure | Rs2,706 billion (includes salaries, pensions, service delivery, PFC awards) |
| Federal Transfers Expected | Rs4,062 billion |
| Provincial Revenue Target | Rs828.2 billion (includes PRA, Board of Revenue, Mines & Minerals) |
| Foreign Funding & Loans | Rs97.9 billion |
| EPS Allocation (IMF/Federal) | Rs740 billion |
Key Allocations – Sector-Wise
| Sector | Allocation/Initiatives |
|---|---|
| Local Governments (PFC) | Rs764.2 billion |
| Social Protection | Rs70 billion |
| Foreign-Funded Projects | Rs171.7 billion |
| Electric Buses | Rs310 billion |
10 per cent salary Increment
Thegovernment announced 10 per cent salary hike and 7pc for pensioners in budget 2025-26
Education and Youth Empowerment
| Sub-Sector | Allocation |
|---|---|
| Non-Development Education | Rs661 billion |
| Punjab Laptop Scheme | Rs37 billion (112,000 laptops) |
| – University Students | Rs27 billion |
| – College Students | Rs10 billion |
| Merit-Based Scholarships | Rs15 billion |
| Student Stipends | Rs4.5 billion |
| Punjab Education Foundation | Rs35 billion |
| School Education | Rs100 billion |
| Higher Education | Rs39.5 billion |
| Special Education | Rs5 billion |
| Literacy & Non-Formal Education | Rs4 billion |
Health Sector
| Category | Allocation |
|---|---|
| Total Health Budget | Rs631 billion |
| – Development | Rs181 billion |
| – Non-Development | Rs450 billion |
| Nawaz Sharif Institute of Cardiology | Rs2.6 billion (Sargodha) |
| Jinnah Institute of Cardiology | Included (Lahore) |
| Nawaz Sharif Medical District | Rs109 billion |
| Maryam Nawaz Health Clinics | Rs9 billion |
| Community Health Programme | Rs12.6 billion |
| Nawaz Sharif Cancer Institute | Rs14 billion released + Rs12 billion new |
| Emergency Ambulance (Motorways) | To be launched |
Infrastructure & Urban Development
| Project/Area | Allocation/Plan |
|---|---|
| Road Construction | Rs120 billion |
| Urban Development | Rs145 billion |
| Irrigation | Rs38 billion |
| Energy Sector | Rs7.5 billion |
| Public Buildings | Rs25 billion |
| Lahore Canal Road Train | Proposed project |
| Gujranwala Metro Bus | Proposed project |
Revenue & Resource Mobilization
| Source | Expected Revenue |
|---|---|
| Punjab Revenue Authority (PRA) | Rs340 billion |
| Board of Revenue | Rs135.5 billion |
| Mines and Minerals | Rs30 billion |
Political & Diplomatic Notes
| Theme | Remarks |
|---|---|
| Stance on Israel | Condemned Israeli actions in Gaza |
| Pakistan’s Diplomatic Success | Celebrated recent diplomatic achievements, notably over India |
The province expects Rs4,062 billion from federal transfers and an additional Rs97.9 billion from foreign funding, loans, and state trading. Under the federal-IMF fiscal framework, an EPS allocation of Rs740 billion is also included to ensure financial discipline.
