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Business Recorder
16-06-2025
- Business
- Business Recorder
Punjab unveils Rs5.335trn budget
LAHORE: Punjab Finance Minister Mujtaba Shuja-ur-Rehman presented the Punjab budget for the financial year 2025-26 in the assembly session on Monday, outlining a total outlay of Rs 5,335 billion. The budget reflects significant allocations for development, social welfare, and infrastructure, marking, what the minister described as, a 'strategic shift' in Punjab's history. The provincial government has allocated Rs 2,706.5 billion for non-development expenditures, including pensions and salaries, reflecting a 6% increase from the previous year. Additionally, Rs 590 billion has been budgeted under current capital expenditure. Despite opposition lawmakers disrupting the session by protesting near Chief Minister Maryam Nawaz's seat and labeling the budget as 'unrealistic', the finance minister proceeded with his speech, detailing sector-wise allocations. Shuja-ur-Rehman began by acknowledging the political and military leadership for safeguarding national interests during recent tensions with India. He emphasized the government's commitment to economic stability, noting a 94% reduction in internal debt servicing and an 88% decrease in estimated expenditures under Account-II (Food) compared to the current fiscal year. A substantial portion of the budget, Rs 1,240 billion (23% of the total outlay), has been allocated for development programs, representing a 47% increase from the previous year's Rs 842 billion. The social sector, including health and education, remains a top priority, receiving Rs 494 billion (40% of the Annual Development Program). Revenue collection for 2025-26 is estimated at Rs 4,890.4 billion, with Punjab expected to receive Rs 4,062.2 billion from the federal divisible pool under the National Finance Commission (NFC). Provincial receipts are projected at Rs 828.2 billion, with the Punjab Revenue Authority (PRA) tasked with collecting Rs 340 billion, the Board of Revenue Rs 135.5 billion, and the excise department Rs 70 billion. The budget also incorporates Rs 470 billion under the federal government's agreement with the IMF, contingent on the Federal Board of Revenue (FBR) meeting its targets. The government has allocated Rs 148 billion for education development, a 127% increase from the previous year. Initiatives include Rs 15 billion for student scholarships, Rs 40 billion for missing facilities in schools, Rs 5 billion to reduce dropout rates, and Rs 5 billion for centers of excellence in 36 districts. Additionally, Rs 3 billion has been earmarked for the Nawaz Sharif Center of Excellence in 10 divisions while Rs 35 billion will support the Punjab Education Foundation for private-sector collaboration. The health sector receives Rs 181 billion, a 131% increase, with Rs 72 billion allocated for the Nawaz Sharif Institute of Cancer Treatment and Research in Lahore. Rupees 123 billion have been set aside for agriculture, livestock, and irrigation, alongside Rs 795 billion for climate resilient projects - a first in Punjab's history. This includes Rs 277.4 billion for climate adaptation, Rs 371.7 billion for mitigation, and Rs 146 billion for environmental protection capacity-building. Rupees 336 billion (27% of the development budget) will fund infrastructure projects, while Rs 85 billion supports Chief Minister Maryam Nawaz's T-30 transport vision. Seed money of Rs 1 billion has been allocated for a feasibility study on Punjab's first public-private airline, and Rs 2 billion will initiate regional railway tracks in collaboration with the federal government. The energy sector receives Rs 7.5 billion, including Rs 600 million for a bio-fertilizer plant in Gujjar Colony and Rs 8 billion for solarizing courts, schools, and hospitals. Social protection programs are allocated Rs 31.4 billion, while Rs 11.6 billion will promote information, culture, and the film industry. The finance minister announced a 10% salary increase for government employees from Grade 1 to 22 and raised the minimum wage from Rs 37,000 to Rs 40,000. Additional allocations include Rs 400 million for the Housing Foundation and Rs 1 billion for the Journalist Endowment Fund. Shuja-ur-Rehman concluded by highlighting the completion of 6,104 projects in the current fiscal year and reaffirmed the government's commitment to sustainable development and economic growth. This budget, he stated, represents the highest-ever development expenditure in Punjab's history, setting a new benchmark for progress. Copyright Business Recorder, 2025
Express Tribune
16-06-2025
- Business
- Express Tribune
Punjab unveils Rs5,335bn tax-free budget for 2025-26
Punjab Finance Minister Mujtaba Shuja ur Rehman on Monday presented a Rs5,335 billion budget for fiscal year 2025–26 in the provincial assembly, terming it a "people-friendly" plan aligned with the development vision of Chief Minister Maryam Nawaz Sharif. The provincial cabinet, led by Punjab Chief Minister Maryam Nawaz Sharif, approved the budget ahead of the session. CM Maryam addressed the 27th provincial cabinet meeting, announcing zero-tax budget for fiscal year 2025–26. Chief minister said the budget reflects 'every rupee as a public trust' and is guided by 'accountability before God.' In her address, Maryam Nawaz highlighted a 47% increase in the Annual Development Programme (ADP), taking it to Rs1,240 billion, while ensuring no new taxes were introduced. 'This is a zero-tax budget and also the largest development budget in Punjab's history,' she said. She noted that despite record allocations, 'no financial scandal has emerged,' crediting improved financial discipline, e-tendering processes, and a focus on transparency and good governance. 'Instead of raising taxes, we will focus on expanding the tax net,' she said, while expressing dissatisfaction over the Punjab Revenue Authority's performance, adding that 'there is room for improvement.' CM Maryam Nawaz outlined several achievements and goals, including the launch of 100 innovative development projects, 94 new public programmes, and the construction or expansion of 12,000 kilometres of roads. '700 roads are currently under construction,' she added. The chief minister reaffirmed her government's focus on health and education, promising provision of free medicines and infrastructure upgrades in public schools. She also announced that the minimum wage had been set at Rs40,000 and called for the digitalisation of wage systems. Maryam Nawaz credited her team's efforts, applauding the senior minister and the chief secretary's performance, noting that her father, former Prime Minister Nawaz Sharif, also praised the cabinet's work. 'We declared an emergency in Punjab and delivered. We met IMF conditions and still presented a Rs740 billion budget surplus,' she said. She also hinted at a possible performance-based bonus system for civil servants and said the province had achieved a 94% reduction in local borrowing. Calling the 2025–26 budget a 'historic public service package,' she concluded, 'The work ethic in Punjab has transformed. Power is a trust from God; serving people is our mission.' Senior Minister for Planning & Development Marriyum Aurangzeb and Finance Minister Mujtaba Shuja ur Rehman gave detailed briefings during the session. In a post on social platform X, Senior Minister Marriyum Aurangzeb said the Annual Development Programme (ADP) had been increased by 47%—from Rs842 billion to Rs1,240 billion—despite a 'compressed' overall fiscal space. Government operational expenses rose by just 3%, even with salary and pension hikes. Punjab Budget Highlight Chief Minister Punjab Maryam Nawaz Sharif has approved Punjab Annual budget. Despite a comparatively compressed budget, the ADP has increased by 47% from 842 bn to 1240 bn while government operational expenses rose only by 3%, even after salary & pension… — Marriyum Aurangzeb (@Marriyum_A) June 16, 2025 Aurangzeb described the budget as a historic and strategic realignment of priorities, calling it a departure from outdated traditions under the chief minister's 'fearless and reformist leadership.'
Business Recorder
12-06-2025
- Business
- Business Recorder
Punjab to present ‘tax-free budget' on 16th: minister
LAHORE: The Punjab government will present its annual budget for the fiscal year 2025–26 on June 16, following a short delay from the initially announced date of June 13. Finance Minister Mujtaba Shujaur Rehman confirmed the change during the Punjab Revenue Authority performance review meeting on Wednesday. He also reiterated that the expansion of the tax net will be ensured to increase revenue in the next fiscal year. Meanwhile, according to the sources, the upcoming budget will be tax-free, and no new taxes will be introduced. Estimated at over Rs1,200 billion, the new fiscal plan is expected to feature a record-breaking development outlay emphasising health, education, infrastructure, and tourism. The new budget will include over 850 development schemes and the key projects include the expansion of Nawaz Sharif Medical City in Lahore where new hospitals will be constructed under a public-private partnership model. The government also plans to roll out extensive sanitation and clean drinking water initiatives throughout Punjab. Infrastructure development remains a central priority. Moreover, the provincial transport network will be expanded to additional cities, while road and urban infrastructure projects are planned for 66 cities across the province. These initiatives reflect the government's strategy to improve public services and promote inclusive growth without imposing new tax burdens on citizens, said sources. The sources also confirmed that proposals for new taxes, submitted by the Board of Revenue and the Punjab Revenue Authority, were rejected by Punjab Chief Minister Maryam Nawaz Sharif. The government is instead reviewing the current tax structure to identify adjustments in existing rates where necessary. The Punjab Assembly is scheduled to convene on June 16 for the formal presentation of the budget. Copyright Business Recorder, 2025
Business Recorder
10-06-2025
- Business
- Business Recorder
CM directs registration of non-registered restaurants, marriage halls
LAHORE: A decision has been made to immediately register unregistered restaurants and marriage halls in Punjab. Chief Minister Punjab Maryam Nawaz Sharif has directed to take prompt measures for the registration of all small and large restaurants as well as marriage halls across the province. The Chief Minister while chairing a special meeting approved the decision for the registration of all restaurants and marriage halls across Punjab. The Chief Minister rejected all proposals to enhance taxes. She directed the relevant institutions to expand the tax net instead of merely increasing the tax rate. She asserted, 'Increasing taxes to place unnecessary burden on the public will not be permitted and tolerated at any cost. The owners of restaurants and marriage halls who get themselves registered should not be punished while the tax evaders should not be allowed to go scot-free under any circumstance.' The Chief Minister emphasized that the government does not want to place any sort of financial burden on the common man. She highlighted, 'A person earning Rs200,000 pays tax regularly, while those earning millions do not pay any tax and wilfully indulge into tax evasion.' She also directed the Punjab Revenue Authority, Mines & Minerals, and other government departments to explore new measures to generate as well as enhance revenue in the province. Copyright Business Recorder, 2025
Business Recorder
03-06-2025
- Business
- Business Recorder
PRA achieves record-breaking tax collection
LAHORE: The Punjab Revenue Authority (PRA) has achieved a significant milestone by collecting a record Rs. 26.12 billion in tax revenues during May 2025, reflecting a 23% increase compared to the same month last year. From July 2024 to May 2025, the Authority has collected a total of Rs. 240 billion, marking a 16% growth over the corresponding period of the previous fiscal year. Out of this, Rs. 225 billion was collected under Punjab sales tax, also showing a 16% year-on-year increase. Furthermore, Rs. 5.6 billion was generated through the Punjab Infrastructure Development Cess, showing an 18% rise, while the Punjab Workers Welfare Fund witnessed a substantial 30% growth, with Rs. 9.3 billion collected during the same period. It is important to note that this performance has been achieved without imposing any new tax or increasing existing tax rates. The PRA credits this success to a robust enforcement strategy and the effective deployment of modern technology. With continued efforts, the Authority is confident of surpassing its annual tax collection target for the fiscal year. Copyright Business Recorder, 2025
