The Punjab government has proposed a Rs5.903 trillion budget for fiscal year 2026–27, prioritizing education, healthcare, infrastructure development, industrial expansion, and digital governance.
The budget also allocates funds for youth development, law and order (Rs. 252 billion), sports initiatives, women’s programs, and skill development schemes, while introducing targeted incentives for value addition in minerals such as pink salt.
Education receives the largest allocation at Rs. 750 billion, with plans to continue merit-based scholarships and distribute more than 100,000 laptops to students across the province.
Health has been allocated Rs. 500.62 billion, while Rs. 507 billion is earmarked for clean water, sanitation, and urban services, including Rs. 187.1 billion for water and related development schemes.
The agriculture and livestock sectors have been allocated Rs. 132.54 billion, with additional funding of Rs. 111.97 billion proposed for fisheries and Rs. 4.85 billion for livestock health programs.
For social and administrative spending, salaries of government employees are proposed to increase by 7 percent, while pensions are set to rise by 3.5 percent. A total of Rs. 803 billion is proposed for local governments under the PFC award.
The province expects Rs. 4.39 trillion from the federal divisible pool, while its own revenue target has been set at Rs. 1.209 trillion. A projected Rs. 910 billion surplus is also included in line with IMF-backed fiscal planning.
On development priorities, Rs. 1.24 trillion has been allocated under the Annual Development Program, with major investment directed toward transport, industrial zones, and urban infrastructure. The government also plans to introduce 2,000 electric buses with an allocation of Rs. 168 billion.
Industrial policy measures include an estimated Rs. 783 billion investment push, reforms in land leasing rates, and a revised framework for special economic zones aimed at attracting private sector activity. Officials expect major job creation and expanded industrial output from these measures.
Export-oriented sectors have also been targeted through sector-specific packages. The garment sector is expected to generate 20,000 jobs with support for new garment units, while the leather industry is projected to gain up to $300 million in additional exports through wastewater treatment and testing facilities.
Reforms in pharmaceuticals, cutlery, sports goods, ceramics, and fan manufacturing include upgraded testing labs, certification systems, and unified inspection mechanisms to reduce business costs by up to 60 percent and improve global market access.
Environmental compliance and industrial modernization measures include Rs. 25 billion for effluent treatment plants and Rs. 193 billion for concessional financing to 463 industrial projects, alongside additional step financing to expand exports and investment.
Digital economy initiatives include Rs. 700 million for e-commerce readiness, establishment of digital trade hubs, and support for around 2,000 businesses to enter online export markets, with projected growth in annual export earnings.
The budget is being viewed as a balanced framework combining fiscal discipline, development spending, and employment generation.
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