Lahore, June 16, 2025: The Punjab government on Monday presented a Rs5.335 trillion tax-free budget for the fiscal year 2025-26, with a record-breaking allocation of Rs1.24 trillion for development — marking a 47% increase over the previous year.
Presenting the budget in the provincial assembly, Punjab Finance Minister Mujtaba Shuja-ur-Rehman said the development outlay is the highest in the province’s history and reflects a “strategic shift” in public sector priorities.
Key highlights:
- Total budget: Rs5.335 trillion
- Development budget: Rs1.24 trillion (up from Rs842 billion in FY25)
- Non-development expenditure: Rs2.706 trillion
- Current capital expenditure: Rs590 billion
- Provincial surplus target: Rs740 billion (in line with IMF-federal govt agreement)
- No new taxes introduced
Salaries and pensions
The government announced a 10% salary increase for provincial employees and a 5% rise in pensions for retired personnel.
Sectoral allocations
Education
- Total allocation: Rs809 billion
- Development: Rs148 billion
- Non-development: Rs661 billion
- Rs15.1 billion for Chief Minister’s Laptop Scheme (112,000 students)
- Rs40 billion for government school uplift
- Rs15 billion for merit scholarships
- Rs25 billion for higher education
- Rs5 billion for special education
Health
- Total allocation: Rs630.5 billion
- Development: Rs181 billion (↑131%)
- Non-development: Rs450 billion
- Rs109 billion for Nawaz Sharif Medical District (Lahore)
- Rs79.5 billion for free medicines in public hospitals
Social sector
- Rs494 billion allocated (40% of development budget)
- Rs70 billion proposed under a social security package
Agriculture, livestock & irrigation
- Development: Rs123 billion
- Non-development: Rs56.2 billion
Construction & infrastructure
- Rs335.5 billion allocated
- Major projects include the expansion of Nawaz Sharif Medical City under a public-private partnership model
Local bodies & municipal services
- Rs411.1 billion for local governments
- Rs150 billion for waste management
- Rs20 billion for municipal corporations
Revenue targets
- Federal transfers (FDP): Rs4,062.2 billion
- Provincial revenue target: Rs828.1 billion
- Punjab Revenue Authority (PRA): Rs340 billion
Political & security context
The finance minister began his speech by lauding the political and military leadership for defending national interests amid recent tensions with India. His remarks were met with protests from opposition lawmakers belonging to Pakistan Tehreek-e-Insaf (PTI).
The minister highlighted that 6,104 projects were completed during the outgoing fiscal year and announced the establishment of the Nawaz Sharif Institute of Cancer Treatment and Research in Lahore at a cost of Rs72 billion.
Officials confirmed that the budget includes more than 850 development schemes, with a strong focus on health, education, infrastructure, and tourism. The government also plans to expand clean drinking water and sanitation programs across the province.
