Lahore: The Punjab government on Monday presented a PKR 5.335 trillion budget for the fiscal year 2025–26, unveiling a record development outlay of PKR 1.24 trillion — a 47% increase from last year’s allocation.
Finance Minister Mujtaba Shuja-ur-Rehman introduced the budget during a session of the provincial assembly. The presentation came a week after the federal government announced its fiscal plan.
Out of the total budget, PKR 2.706 trillion has been allocated for non-development expenditure, which includes salaries and pensions — a segment that has seen a 6% rise. An additional PKR 590 billion has been earmarked for current capital expenditure.
The Punjab government has projected federal transfers of PKR 4.062 trillion under the Federal Divisible Pool, while targeting PKR 828.1 billion in provincial own-source revenue. The Punjab Revenue Authority (PRA) is tasked with collecting PKR 340 billion.
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Key Sector Allocations
• Social Sector: PKR 494 billion (40% of development budget)
• Education: PKR 148 billion for development, PKR 661 billion for non-development
• Health: PKR 630.5 billion total, including PKR 181 billion development allocation
• Local Bodies: PKR 411.1 billion
• Agriculture, Livestock & Irrigation: PKR 123 billion (development), PKR 56.2 billion (non-development)
• Construction: PKR 335.5 billion
Flagship Initiatives
• Nawaz Sharif Institute of Cancer Treatment and Research in Lahore (PKR 72 billion)
• Nawaz Sharif Medical District (PKR 109 billion)
• Chief Minister’s Laptop Scheme: PKR 15.1 billion for 112,000 students
• Merit Scholarship Programme: PKR 15 billion
• Special Education: PKR 5 billion
• Free Medicines in Public Hospitals: PKR 79.5 billion
• Social Security Package: PKR 70 billion
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Salaries and Pensions
The provincial government has announced a 10% increase in salaries for government employees and a 5% increase in pensions.
To meet federal commitments under IMF guidelines, the Punjab government has included a PKR 740 billion provincial surplus in its fiscal framework. The minister noted that achieving this surplus is tied closely to the Federal Board of Revenue’s performance.