No new taxes imposed; Salaries up 7%, pensions 3.5%; Development budget Rs2.638tr; Opposition stages protest during PA session, rejects budget; Maryam says every possible effort made to provide maximum relief to people
Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman on Tuesday presented a Rs 5,903.5 billion provincial budget for the fiscal year 2026-27 in the Punjab Assembly.
Framed under Chief Minister Maryam Nawaz Sharif’s Economic Transformation Plan, the massive financial blueprint focuses heavily on mega-infrastructure, green energy, tech-driven agriculture, and expansive social safety nets all while imposing no new taxes on the public.
Chief Minister Maryam Nawaz Sharif, provincial ministers and members of the provincial assembly attended the budget session. Opposition lawmakers staged a protest during the proceedings, moving towards the speaker’s dais and gathering in front of it, which caused a commotion in the House.
The Punjab government has proposed a 7pc increase in the salaries of government employees, taking total salary expenditure to Rs639 billion.
According to the proposed budget, pensions for retired government employees will increase by 3.5pc, taking total pension expenditure to Rs500 billion.
The government proposed a three-year development plan worth Rs1,995 billion aimed at strengthening economic growth, boosting exports and creating large-scale employment opportunities across multiple sectors.
The plan is expected to generate an additional $6.8 billion in exports and create millions of jobs through broad-based investment and sectoral development initiatives across the province.
Under the framework, Rs1,188 billion has been allocated to industry, Rs586 billion to agriculture, Rs230 billion to livestock, and Rs642 billion to tourism, while Rs190 billion has been earmarked for aqua farming development.
In addition, Rs186 billion has been set aside for the skills development sector, while Rs64 billion has been allocated for the technology sector, reflecting the government s focus on diversified and modernised economic growth.
The budget also prioritised social sectors, with more than 10% of total spending allocated to health to ensure improved and free healthcare services across the province.
For the education sector, Rs750 billion has been proposed for fiscal year 2026 27, including Rs63.3 billion for development expenditure and Rs686.8 billion for non-development spending, accounting for over 15% of the total budget.
The government also allocated a total of Rs507 billion for development and non-development expenditures for the water, sanitation, urban and local development sectors.
Of this amount, Rs187.1 billion has been earmarked for development projects aimed at improving infrastructure and expanding essential public services across urban and rural areas of the province.
A major portion of the development budget will support the provision of safe drinking water and sanitation facilities.
Under the Saaf Pani Programme, projects worth Rs45 billion are currently being implemented in 18 districts across the province to ensure the supply of clean and safe drinking water.
As part of the initiative, more than 5,600 water filtration plants will be installed throughout the province.
The government is also digitally geo-tagging all filtration plants to enhance monitoring and transparency. In addition, a dedicated public helpline, 1336, has been established to address complaints and ensure efficient service delivery.
The provincial government is also pursuing rural development through the Model Village Programme, which carries an estimated cost of Rs59 billion. Under the programme, 48 villages in 10 divisions are being transformed into model villages equipped with modern civic amenities and improved infrastructure.
Opposition Leader in the Punjab Assembly Moeen Riaz Qureshi rejected the provincial budget, describing it as a “web of words” and alleging that it failed to address the real issues faced by the public and key economic sectors.
Earlier, CM Maryam approved the budget for the fiscal year 2026-27 after the 35th meeting of the provincial cabinet accorded its formal approval to the budget document.
The proposed budget for the upcoming fiscal year is 10.7pc higher than the current year s, according to the budget speech.
The Punjab government has projected total revenue for the upcoming fiscal year at Rs1.2 trillion.
Total current and capital expenditures are projected at Rs679 billion.
The government is also proposing a further Rs15.21 billion for a cancer hospital in DG Khan, along with Rs23.37 billion for a children s hospital in Bahawalpur.
The government has proposed Rs40 billion for the Maryam Nawaz Sharif Centre of Academic Leadership, Nawaz Sharif Centre of Excellence, and STEAM laboratory programmes.
Addressing the cabinet meeting, the chief minister expressed gratitude to Allah Almighty for presenting her third provincial budget and lauded the efforts of Senior Minister Marriyum Aurangzeb, Provincial Finance Minister Mujtaba Shuja-ur-Rehman, Information Minister Azma Bokhari, Chief Secretary Zahid Akhtar Zaman, Finance Secretary Mujahid Sherdil and the entire team involved in preparing the budget.
Maryam said the government had made every possible effort to provide maximum relief to the people and minimise the financial burden on them despite economic challenges and prevailing global conditions.
She added that although the province had to allocate a substantial amount as its share to the federation, the government remained committed to safeguarding public interests.
He credited Prime Minister Shehbaz Sharif and Field Marshal Asim Munir for Pakistan’s diplomatic successes and said the country had played a constructive role in efforts aimed at maintaining regional peace. CM Maryam said the budget for FY27 had been prepared without imposing any new taxes and was focused on public welfare, development and prosperity. She described it as a “budget of hope” aimed at delivering relief to citizens through the province’s own resources.
The chief minister directed the Punjab Revenue Authority to take effective measures to enhance revenue generation and strengthen the province s financial capacity.
She appreciated the collective efforts of the cabinet members and officials, saying the entire team had worked as one unit to prepare a people-friendly budget.
Expressing confidence in the government’s performance, Maryam said she hoped the budget would meet the aspirations of the people as in previous years.
She also prayed for the ability to continue serving the people of Punjab with sincerity and dedication.
