LAHORE: The Punjab government has announced key allocations in its 2025–26 budget, including substantial funding for solar energy, transportation, social welfare, and agriculture.
Delivering the budget speech on Monday, Finance Minister Mujtaba Shujaur Rehman stated that Rs4 billion has been allocated for the solar panel scheme, aimed at promoting renewable energy across the province. He also revealed a significant 359% increase in the transport budget, along with an allocation of Rs8.3 billion for shrimp farming, to support agricultural diversification.
Under the 2025–26 budget, the government has introduced major social welfare initiatives, including:
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
Rs150 billion under the Apni Chhat Apna Ghar program
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.
Punjab increases minimum wage for workers
The Punjab government has presented the 2025–26 budget in the provincial assembly, setting the minimum wage for workers at Rs40,000. This marks an increase from last year’s minimum wage of Rs37,000.
Presenting the budget, Punjab Finance Minister Mujtaba Shujaur Rehman announced a 10% increase in the salaries of provincial government employees from Grades 1 to 22. He also proposed a 5% increase in pensions for retired employees.
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.
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.
Additionally, the budget allocates Rs80.14 billion for 34 new schemes and Rs4.56 billion for 20 ongoing development projects across the province.
Punjab govt approves hike in salaries, pensions
The Punjab Assembly on Monday approved a 10 per cent increase in the salaries of government employees and a 5 per cent hike in pensions for retired officials as part of the provincial budget for the fiscal year 2025–26.
The decision, announced by Finance Minister Mian Mujtaba Shuja-ur-Rehman during the budget session, comes as part of a broader effort by the PML-N and PPP coalition government to provide financial relief to public sector workers in the face of persistent inflation and economic uncertainty.
“The government recognises the financial strain on employees and pensioners and has responded with a responsible and compassionate increase,” said Mr Shuja-ur-Rehman while presenting the budget.
The 10pc salary hike will be applicable to all provincial government employees, while retired public servants will receive a 5pc increment in their monthly pensions. The increases are part of the Rs2,706.5 billion non-development expenditure allocation, which also includes funding for salaries, pensions, and administrative costs.
These measures were passed alongside other major development initiatives, including Rs72 billion for the Nawaz Sharif Cancer Hospital in Lahore and Rs148 billion for education sector development — which features new classroom construction and expanded scholarship programmes.
The budget was presented amid protests by opposition members, who raised slogans and criticised the budget as “inadequate” and “politically driven.” However, treasury benches maintained that the approved allocations reflect a commitment to public welfare despite fiscal constraints.
The Punjab government has allocated Rs148 billion under the development budget for the education sector in the fiscal year 2025–26.
Presenting the provincial budget in the Punjab Assembly, Finance Minister Mian Mujtaba Shuja-ur-Rehman announced a series of initiatives aimed at uplifting the educational landscape.
The allocation includes funding for new projects, expansion of existing programmes, and substantial support for infrastructure development and student scholarships.
A key highlight of the education budget is the earmarking of 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.
“Inclusion, accessibility, and excellence remain at the heart of our education policy,” the minister said, emphasising the importance of investing in the youth to drive long-term provincial progress.
To meet the growing infrastructural demands in public schools, the budget includes Rs40 billion for the construction of additional classrooms across Punjab. This move is expected to ease overcrowding and enhance the learning environment in government schools, especially in underserved rural areas.
Furthermore, a Rs35 billion allocation has been made for the Education Delivery Programme, which aims to improve learning outcomes, teacher training, and the overall delivery of education services throughout the province.
The Punjab government on Monday unveiled a string of ambitious healthcare reforms in its provincial budget for the fiscal year 2025-26, including the establishment of the Nawaz Sharif Cancer Hospital in Lahore and the conversion of Basic Health Units (BHUs) into Maryam Health Clinics across the province.
Presenting the budget in the Punjab Assembly amid vociferous protests by opposition members, Finance Minister Mian Mujtaba Shuja-ur-Rehman announced that a state-of-the-art cancer treatment facility, named after former Prime Minister Nawaz Sharif, would be constructed in the provincial capital at an estimated cost of Rs72 billion.
The hospital is aimed at addressing the growing burden of cancer in Punjab by offering specialised treatment and diagnostics to patients from all districts. “This initiative will significantly reduce the need for patients to travel abroad or to private institutions for cancer care,” Mr Shuja-ur-Rehman told the House.
He further revealed that a major overhaul of primary healthcare services was underway, with plans to upgrade BHUs into Maryam Health Clinics. Named after PML-N’s chief organiser Maryam Nawaz, the clinics will offer extended primary healthcare services, with added focus on maternal and child health, vaccinations, and digital record-keeping.
“This is not just a name change; it represents a fundamental shift in the quality and accessibility of grassroots healthcare delivery in Punjab,” the minister said.
The finance minister’s speech also highlighted broader fiscal allocations, with a total outlay of Rs2,706.5 billion earmarked for non-development expenditures, including salaries, pensions, and operational costs. However, health remained a focal point, reflecting the government’s stated commitment to social sector investment despite financial constraints.
The budget presentation was marred by loud slogans and walkouts staged by opposition members, who termed the fiscal proposals “unrealistic” and “politically motivated.” However, treasury members countered that the reforms marked a new chapter in equitable and inclusive healthcare delivery.
Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman presented Rs5.335 trillion provincial budget for the fiscal year 2025-26 during the Punjab Assembly session on Monday amid strong protests led by Opposition benches.
Out of this total, 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.
The minister noted that only a 6% increase has been made in overall expenditures compared to the previous fiscal year, reflecting the government’s efforts to maintain fiscal discipline.
Total Provincial Consolidated Fund has been estimated at Rs5,335 billion, forming the backbone of the province’s financial framework for the upcoming fiscal year.
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.
Federal Board of Revenue (FBR) has set a national target of Rs14,131 billion, with Punjab’s share amounting to Rs4,062.2 billion.
Punjab Revenue Authority (PRA) is targeting Rs340 billion, showing a 13% increase from the previous year. Meanwhile, the Board of Revenue (BOR) aims to generate Rs105 billion. The Urban Immovable Property Tax is expected to contribute Rs32.5 billion to the provincial revenues.
Punjab has proposed its highest ever Annual Development Programme (ADP) allocation, amounting to Rs1,240 billion.
An estimated budget surplus of Rs740 billion has been projected, indicating prudent fiscal management with targeted subsidies worth Rs72.3 billion have been allocated, covering sectors such as agriculture, transport, health, and social welfare.
Read more: Defence Minister Asks World To Confront With Israel’s Nuclear Threat
