Punjab Sets National Precedent: PSBA Emerges as Pakistan’s First Statutory, Subsidy-Free Welfare Authority

Punjab has formally transitioned its Model Bazaars initiative into a statutory body with the passage of the Punjab Sahulat Bazaars Authority Act earlier this year. The move marks the first instance in Pakistan where a Section 42 company has been elevated to statutory status, giving the institution financial and legal autonomy to operate as a welfare retail network without recurring subsidies.

From Deficit to Surplus

Under the leadership of Director General Naveed Rafaqat Ahmad, the former Punjab Model Bazaars Management Company, which once recorded a deficit of Rs 14.31 million in 2015–16, has transformed into the Punjab Sahulat Bazaars Authority (PSBA), reporting Rs 1.545 billion in own-source revenue and a Rs 14.6 million surplus in FY2023–24.

A Subsidy-Free Model

PSBA distinguishes itself from the Utility Stores Corporation (USC) by operating entirely without operational subsidies. Essentials are provided at around 35% below open-market prices and about 7% below government-notified rates, with state funds restricted to infrastructure and development projects such as new bazaars and solarization.

Scale and Social Reach

The authority currently manages 36 bazaars across 25 districts, drawing an estimated 60 million customer visits annually. It supports more than 7,350 stalls and over 60,000 families through direct and indirect employment. Expansion plans under the 2025–26 Annual Development Programme include Rs 10 billion in funding for 100 new bazaars, expected to double capacity to 15,000 stalls. Special policies, such as 50% rent discounts for women entrepreneurs, further aim to encourage broader participation.

Efficiency and Innovation

PSBA has introduced operational reforms, including solarization pilots that cut electricity costs from Rs 1 million per month to Rs 100,000. Province-wide rollout of this initiative has been allocated Rs 693 million. Procurement reforms have saved Rs 130 million, while the launch of Pakistan’s first statutory home delivery system fulfilled more than 85,000 orders within seven months using digital platforms and a logistics fleet.

Independent Validation

External evaluations between FY2020–24 placed PSBA at the top among more than 15 peer institutions, with a composite score of 86 out of 100. The authority scored 90 in financial sustainability, 84 in governance, and 82 in service delivery. Governance assessments rated it 84% overall, with full compliance in legal and regulatory areas. The Federal Board of Revenue also granted PSBA Non-Profit Organization status with an 84% welfare score.

A Replicable Model

PSBA now stands as Pakistan’s first statutory, subsidy-free welfare authority, combining price stabilization with fiscal independence, digital innovation, and inclusive policies. Analysts note that its approach contrasts with subsidy-heavy institutions such as the USC, presenting a potential model for replication in other provinces and developing economies.