When the Punjab Assembly passed the Punjab Sahulat Bazaars Authority Act in March 2025, it marked the first time in Pakistan that a Section 42 company was elevated into a statutory authority. The move established a legally empowered and financially independent institution tasked with providing affordable essentials to citizens.
The transformation was led by Naveed Rafaqat Ahmad, who oversaw the shift from the Punjab Model Bazaars Management Company, which recorded a deficit of Rs. 14.31 million in 2015-16, to the Punjab Sahulat Bazaars Authority (PSBA). By 2023-24, the entity reported Rs. 1.545 billion in revenue and a Rs. 14.6 million surplus.
Unlike other welfare initiatives such as the Utility Stores Corporation, which rely heavily on government subsidies, PSBA operates without recurring subsidies. Essentials are offered at prices approximately 35 percent lower than open-market rates and about 7 percent below Deputy Commissioner–notified rates, with funding generated through the authority’s own revenue. Government allocations are restricted to capital development projects such as establishing new bazaars and solarizing facilities.
PSBA currently operates 36 bazaars across 25 districts, with 7,350 stalls providing direct and indirect livelihoods to more than 60,000 families. Under the FY2025-26 Annual Development Programme, Rs. 10 billion has been allocated for 100 new bazaars, which would increase capacity to 15,000 stalls province-wide. More than 16,000 farmers are connected to these bazaars, allowing them to bypass intermediaries and secure better farm-gate prices. Policies also include discounted rents for women entrepreneurs, aiming to improve gender inclusion.
The authority has introduced innovations such as a province-wide free home delivery system for essential goods, which facilitated more than 85,000 deliveries in its first seven months of operation. Solarization projects have reduced monthly utility costs from Rs. 1 million to Rs. 100,000, with Rs. 693 million allocated for wider rollout. Transparent procurement measures saved Rs. 130 million.
Independent evaluations have noted PSBA’s performance. Between FY2020-24, it received a composite score of 86 out of 100, the highest among more than 15 peer institutions, with strong ratings in financial sustainability, governance, and service delivery. The Federal Board of Revenue has also granted PSBA Non-Profit Organization status with an 84 percent welfare score.
PSBA’s development illustrates a subsidy-free approach to welfare retail in Pakistan, combining price stabilization with fiscal independence, gender-focused policies, and digital service delivery. The model has drawn interest as a potential framework for replication in other regions.
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