Punjab Budget 2025-26: Record Spending, Reforms, and Development Roadmap

by | Jun 17, 2025 | Global Affairs

Punjab Budget 2025-26 sets a historic milestone with a total outlay of PKR 5350 billion, including a record PKR 1240 billion development budget—the highest in the province’s history. of PKR 5350 billion for the fiscal year 2025-26, including a historic development budget of PKR 1240 billion—the highest in the province’s history. This budget is not merely a financial document, but a blueprint for socio-economic and technological transformation under the leadership of Chief Minister Maryam Nawaz Sharif.

As part of its people-friendly initiatives, the budget also includes a 10% salary increase for all government employees (Grades 1–22) and a 5% pension raise for retired public servants, without introducing any new taxes.

Unprecedented Investment in Education

The budget allocates PKR 661 billion for non-development and PKR 148 billion for development in the education sector. Key initiatives include:

  • PKR 15 billion for the High Achievers Scholarship Program
  • PKR 15.1 billion to distribute laptops to over 112,000 students under the CM Laptop Scheme
  • PKR 7 billion to expand the School Milk Program to eight districts

Revolutionary Steps in Healthcare

The healthcare sector receives PKR 181 billion in development and PKR 450 billion in non-development funds. Highlights include:

  • Nawaz Sharif Institute of Cancer Treatment (PKR 72 billion)
  • Cardiology Institutes in Sargodha and Lahore (PKR 86 and PKR 88 billion respectively)
  • Free dialysis for over 20,000 patients
  • Over 4,300 free pediatric heart surgeries
  • Home delivery of free medicines to 20 million chronic patients

Support for Farmers and Rural Development

The government will provide interest-free loans worth PKR 106 billion to one million farmers through the Kisan Card. Additionally, 9,500 subsidized tractors were distributed under the Green Tractor Scheme, with a new High-Power Tractor Program launching at PKR 10 billion. Focus areas include crop insurance, water management, and modern mechanization.

Women, Youth & Special Children Initiatives

Over 62 targeted schemes support social protection and empowerment:

  • Himmat Card for persons with disabilities
  • Rashan Card to provide subsidized food supplies
  • Dheer Rani Scheme for supporting girls’ weddings
  • Home-based skills training programs for women

Transport & Road Infrastructure

The government completed 12,000 km of road rehabilitation and is advancing the Smart Safe Cities Project. Plans include launching 1,700 environment-friendly electric buses. Feasibility studies for a high-speed rail from Lahore to Rawalpindi and a tourist train to Murree are also underway.

Digital Governance & IT Development

Key initiatives in IT and governance include:

  • IT Parks and paperless e-governance platforms
  • Accelerate Punjab program with a PKR 23 billion budget
  • CM Advanced Technology and International Placement Programs to boost employment

Social Protection & Housing

  • PKR 150 billion for Apni Chhat Apna Ghar housing scheme
  • PKR 4 billion for Himmat Card
  • PKR 40 billion for Maryam Nawaz Social Security Rashan Card
  • PKR 3 billion for Minority Card
  • Old Age Homes and Working Women Hostels across districts

Film, Tourism & Cultural Development

A PKR 28 billion package will boost heritage preservation, tourism, and screen-based entertainment:

  • Restoration of Lahore’s cultural assets
  • Development of 60 new tourist sites
  • Establishment of film studios, a film school, and post-production labs

Budget Summary Table

SectorBudget Allocation (PKR Billion)
Total Budget5350
Development Budget1240
Education (Dev + Non-dev)809 (148 + 661)
Healthcare (Dev + Non-dev)631 (181 + 450)
Transport & Roads120
Housing & Social Protection197 (150+4+40+3)
Agriculture & Farmers’ Support106
Tourism & Cultural Development28
IT & Digital Governance23

Broader Economic Outlook and Final Thoughts on Punjab Budget 2025-26

The Punjab Budget 2025-26 reflects a vision beyond numbers—one that centers on public welfare, transparency, and sustainable growth. In addition to ambitious spending plans, it maintains fiscal discipline by avoiding new taxes while expanding development expenditures by 47% over the previous year. This balance demonstrates the government’s ability to prioritize people’s needs without compromising economic responsibility.

Moreover, the strategic focus on infrastructure, human capital, healthcare, and digital advancement represents a holistic approach toward uplifting Punjab. From massive education allocations to groundbreaking transportation projects and expanded welfare programs, the budget offers a roadmap that addresses both immediate public needs and long-term provincial resilience.

Under Chief Minister Maryam Nawaz’s leadership, the budget transforms commitments into action, steering the province toward a more inclusive and progressive future that can serve as a model for other regions in Pakistan.