LAHORE: Punjab Finance Minister Mujtaba Shuja ur Rehman on Monday presented the province’s Rs5,335 billion budget for the fiscal year 2025-26.
Prior to the assembly session, Punjab Chief Minister Maryam Nawaz approved the provincial budget.
Health
A substantial amount of Rs 181 billion has been allocated for the health sector in the provincial budget for the fiscal year 2025-26, marking a significant investment in improving healthcare infrastructure and services across the province.
Rs 95 billion has been set aside for Specialized Healthcare and Medical Education, while Rs 86 billion has been allocated for Health and Population.
A major initiative under the new budget is the establishment of the Nawaz Sharif Medical District in Lahore, for which Rs 6.288 billion has been earmarked.
This advanced medical district will house a number of key healthcare institutions including Children Hospital-II, Institute of Genetic Blood Diseases, Institute of Surgical, Orthopedic & Medical Rehabilitation, Center of Excellence for Nursing Education, a Specialized Medical Hospital, a 1000-bedded Cardiac Institute, a Medical University, and a state-of-the-art Diagnostic Lab.
In an effort to enhance access to medical education in underserved regions, the government has announced the establishment of three new medical colleges in Narowal, Okara, and Layyah with an allocated amount of Rs 800 million.
Moreover, a new Children Hospital is to be built in Rawalpindi at a cost of Rs 6 billion, while Rs one billion has been allocated for the construction of a Teaching Hospital in Sialkot.
The Punjab government has also strengthened its Chief Minister’s Special Initiatives in healthcare.
An amount of Rs 8.663 billion has been allocated for the Dialysis Programme, Rs 3.639 billion for the Transplant Program, and Rs 3.212 billion for the Children’s Heart Surgery Program.
Overall, Rs 15.507 billion has been earmarked for the ongoing schemes of the Chief Minister’s Initiatives.
Furthermore, Rs 1.380 billion has been allocated for the ongoing schemes of Medical Education, Rs 25.250 billion for ongoing schemes under Specialized Healthcare and Miscellaneous, and Rs 14.846 billion for ongoing schemes of Tertiary Care Hospitals.
In terms of new healthcare development, the government has allocated Rs 6.289 billion for new schemes under the Chief Minister’s Initiatives, Rs 1.550 billion for new Medical Education projects, and Rs 14.664 billion for new Tertiary Care Hospital schemes. Additionally, Rs 15.514 billion has been set aside for other development programs within the health sector.
Under the Health and Population category, Rs 27.858 billion has been allocated for ongoing schemes, Rs 27.306 billion for new schemes, and Rs 30.835 billion for other development programs.
Allocations for Solar Panel Scheme, Transport, Shrimp Farming
Rs4 billion has been allocated for the solar panel scheme, aimed at promoting renewable energy across the province.
The Finanace Minister revealed a significant 359% increase in the transport budget, along with an allocation of Rs8.3 billion for shrimp farming, to support agricultural diversification.
He further revealed that funds have been earmarked for the introduction of electric buses in Gujrat, Rawalpindi, Sargodha, Faisalabad, and other cities.
A total of 54 new projects under the Transport Department are included in the development budget.
Green Public Transport Initiatives
In a move toward environmental sustainability, eco-friendly buses worth Rs 46 billion are being procured for multiple districts. Currently, 27 green buses are already operating on the roads of Lahore.
Social Welfare initiatives
Rs3.5 billion for the Minority Card
Rs4 billion for the Chief Minister Punjab Himmat Card
Rs40 billion for the Maryam Nawaz Social Security Ration Card
Rs 85.5 billion under the Apni Chhat Apna Ghar program
Govt employees salaries, Pensions Increased
In addition, the finance minister announced a 10% increase in the salaries of provincial government employees from Grades 1 to 22, along with a 5% proposed increase in pensions for retired employees.
Setting of Minimum wage for workers
Punjab government has set the minimum wage for workers at Rs40,000. This marks an increase from last year’s minimum wage of Rs37,000.
Allocation of Rs50 billion for relief on electricity bills
The minister noted that the chief minister had allocated Rs50 billion from the development budget to provide relief on electricity bills, which had been a major concern for the people of Punjab last year.
Allocation of amount for new schemes and Development Budget
Additionally, the budget allocates Rs80.14 billion for 34 new schemes and Rs4.56 billion for 20 ongoing development projects across the province.
Huge Allocations for Education Development
The Punjab government has allocated Rs148 billion under the development budget for the education sector in the fiscal year 2025–26
The allocation includes funding for new projects, expansion of existing programmes, and substantial support for infrastructure development and student scholarships.
The Punjab government earmarked Rs15 billion for merit-based scholarships for high-achieving students.
In addition, the government has decided to continue the Undergraduate Scholarship Programme with an allocation of Rs5.9 billion, enabling thousands of deserving university students to pursue higher education.
To meet the growing infrastructural demands in public schools, the budget includes Rs40 billion for the construction of additional classrooms across Punjab.
Allocation for development budget
The development budget has been set at Rs1,240 billion, marking a significant 47.2% increase from Rs842 billion allocated in FY 2024–25.
Rs 2,706.5 billion have been allocated for non-development expenditures, which include salaries, pensions, and service-related expenses.
Total Provincial Consolidated Fund has been estimated at Rs5,335 billion. Punjab’s Own Source Revenue is projected to be Rs828.1 billion, which includes Rs524.7 billion in tax receipts and Rs303.4 billion in non-tax receipts.
Support for Livestock Farmers
Through a Rs4.4 billion Livestock Card initiative, livestock farmers have been provided with easy loans to support and expand their businesses.
Infrastructure Development in Murree
Work is actively progressing on the Murree Development Programme at a cost of Rs 17 billion, focusing on improving tourism and civic facilities in the region.
Safe City Expansion
The Safe City Project has been expanded to 19 districts with an investment of Rs 5.6 billion, to enhance law enforcement and surveillance capacity.
IT Empowerment for Women
Modern IT courses are being introduced for women across Punjab, equipping them with in-demand digital skills to strengthen their presence in the workforce.
Youth Business & Sports Promotion
Under the Easy Business and Easy Business Finance Scheme, loans amounting to Rs 19 billion have been disbursed to aspiring entrepreneurs.
Moreover, Rs 6.1 billion has been allocated under the ‘Khelta Punjab Programme’, with various sports projects launched, including the establishment of High-Performance Cricket Centres in Sialkot and Faisalabad.
Business support schemes
Punjab’s Finance Minister announced that Rs19 billion in loans have been provided under the Easy Business Scheme and Easy Business Finance Scheme, aimed at empowering youth and small business owners across the province.
Sports budget
Under the Khelta Punjab Programme, which received an allocation of Rs 6.1 billion, several initiatives have been launched. High-Performance Cricket Centres have been established in Sialkot and Faisalabad to nurture athletic talent.
