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Express Tribune
17-06-2025
- Business
- Express Tribune
High hopes on shaky ground
Listen to article Punjab's Rs5.35 trillion budget for FY26 boldly prioritises development over austerity, with no new taxes and a record 47% surge in the Annual Development Programme to Rs1.24 trillion. But beneath the ambitious veneer lie formidable execution risks and structural tensions. The budget's core is inclusive development, with a 21% increase in the education spending to Rs812 billion, and a 17% raise in healthcare spending, including Rs72 billion of the total Rs630 million health budget going to the Nawaz Sharif Institute of Cancer Treatment and Research. Wages and pensions are also up by 10% and 5%, respectively, and the minimum wage has been set at Rs40,000. Roads and other infrastructure -— always a PML-N priority — will also get significant funding. But while these numbers may suggest a keen desire to invest in the province, funding sources are, at best, unreliable. Much like Sindh, the Punjab budget is dependent on timely transfers from the federal government. Unlike Sindh, the Punjab government is claiming a Rs740 billion surplus, equivalent to almost 14% of the total budget, and well in line with the IMF's expectations. Even if there is a significant revenue shortfall, the projected surplus could easily absorb it. Still, surplus or not, potentially delayed federal transfers and the consistently underwhelming performance of the Punjab Revenue Authority may create unnecessary headaches in the coming fiscal year. The PTI-led opposition has also questioned the opacity of the revenue projection required to post a surplus and highlighted the need for monitoring of the planned expenditure. Other experts have also noted that both agriculture and the environment are underfunded. The budget, as presented, could lay the groundwork for notable long-term growth and social gains, but its reliance on expanding the tax net without shifting any burden onto the poor is not going to inspire confidence in too many people.
Express Tribune
16-06-2025
- Business
- Express Tribune
Punjab govt allocates Rs1.24tr for development
The Punjab government has announced a record Rs1.24 trillion Annual Development Programme (ADP) for the fiscal year 202526, aimed at accelerating economic growth, enhancing infrastructure and expanding access to critical public services across the province. According to the budget documents, the development allocation includes Rs314.1 billion for capital expenditures, Rs801.5 billion for revenue-based projects and Rs124.3 billion in foreign project assistance. An additional Rs233.4 billion has been earmarked for special and other development initiatives. The plan seeks to balance ongoing projects with new schemes, aligned with Punjab's long-term development agenda. Social sectors account for the largest share of the ADP, receiving Rs493.5 billion. This includes Rs100 billion for school education, Rs39.5 billion for higher education, Rs5 billion for special education, Rs4 billion for literacy and non-formal education, Rs7.6 billion for sports and youth affairs, Rs95 billion for specialised healthcare and medical education, and Rs86 billion for general health and population welfare. Water supply and sanitation projects will receive Rs6 billion, social welfare Rs7 billion, women development Rs14 billion, and local government and community development Rs142 billion. Infrastructure development has received Rs335.5 billion, with the road sector receiving Rs120 billion for improving connectivity, particularly between rural and urban areas. The irrigation sector is allocated Rs38 billion, including Rs10.3 billion from foreign assistance, for modernising water management systems to enhance agricultural productivity and climate resilience. The energy sector is set to receive Rs7.5 billion, while Rs25 billion will go toward public buildings. Urban development will receive Rs145 billion, including Rs24.2 billion in foreign aid. A total of Rs164.2 billion is dedicated to production sectors such as agriculture, livestock, fisheries, forestry, and cooperatives. Agriculture has been allocated Rs80 billion, targeting mechanisation, improved irrigation, and better seed quality. Livestock and dairy development is allotted Rs5 billion, and fisheries and forestry together will receive Rs15 billion. In addition, Rs10.5 billion has been earmarked for price control and commodity management, Rs10 billion for wildlife conservation, and Rs500 million for the cooperatives department. In support of youth employment and innovation, Rs12 billion has been allocated for skill development and entrepreneurship initiatives. The industry and commerce sector has also received Rs12 billion, aimed at promoting small businesses, industrial park development, and attracting investment. Tourism has been allocated Rs18 billion to support heritage preservation, hospitality infrastructure, and promotional activities. The mining and minerals sector will receive Rs12 billion. Service sectors will benefit from Rs141.6 billion in funding. Governance and IT reforms are being prioritised with Rs35 billion allocated for digital transformation, e-governance, and improving service delivery. Labour and human resource development will receive Rs20.4 billion, while the transport sector is being given Rs85 billion, which will be used to introduces electric buses in various cities of the province. Emergency services, including Rescue 1122, have been allocated Rs12 billion to strengthen disaster response and emergency medical services. Environmental protection and climate change initiatives are also being supported with Rs15 billion. Special development initiatives are budgeted at Rs30.2 billion, while Rs38 billion has been set aside for planning and development operations. The plan includes dedicated funding for minority affairs, human rights, religious affairs, and cultural preservation, with the goal of fostering inclusive development. Key new initiatives under the ADP include the Apni Chhat Apna Ghar housing project with an allocation of Rs50 billion, and the Chief Minister's Saaf Pani Programme with Rs15 billion total outlay and Rs5 billion allocation. The government will strengthen new PHAs and WASAs across the province with Rs10 billion and launch the Chief Minister Punjab Development Programme worth Rs25 billion. Other local development projects include the Model Village Programme, the Rs96 billion Punjab Rural Sustainable Water Supply and Sanitation Project, and the Murree Development Programme Phase-2. In the transport sector, Rs89 billion has been allocated for introducing over 600 eco-friendly buses across major cities, with Rs45.9 billion in this fiscal year. High-speed rail and tourist train feasibility studies have received seed money, as have urban mass transit systems in Lahore, Faisalabad, and Gujranwala. Other initiatives include planning for regional railways, a proposed Air Punjab airline, and infrastructure development for electric buses in Lahore under the Punjab Clean Air Programme.
Business Recorder
16-06-2025
- Business
- Business Recorder
Budget FY2025-26: Punjab govt presents Rs5.3trn ‘tax-free' budget
Punjab Finance Minister Mujtaba Shuja-ur-Rehman on Monday presented the provincial budget for the financial year 2025-26 in the assembly session. A week after the federal government announced its budget, the provincial government proposed its Rs5.335 trillion budget for the upcoming fiscal year. Out of the total budget outlay, Rs2.706 trillion has been allocated for non-development expenditure, including pensions and salaries. 'The non-development expenditure has increased by 6%,' he said. The provincial government has budgeted Rs590 billion under current capital expenditure. As the provincial minister presented the budget, the opposition lawmakers of Pakistan Tehrik-e-Insaf (PTI) protested. He started the budget speech by mentioning the measures taken by the incumbent provincial government. 'I would like to congratulate the political and military leadership for safeguarding national interests during the recent tensions with India,' the minister said. 'We have completed 6,104 projects during the ongoing fiscal year,' he informed. He shared that the government is establishing the Nawaz Sharif Institute of Cancer Treatment and Research in Lahore for Rs72 billion. Record development budget The provincial government allocated Rs1.24 trillion for development in FY26, an increase of 47% as compared to Rs842 billion allocated in FY25. 'This budget marks a strategic shift in Punjab's history,' said the minister. 'This is the highest ever development budget in the province's history.' For the province of Punjab, federal transfers have been estimated at Rs 4,062.2 billion under FDP for the upcoming fiscal year. Meanwhile, the provincial government has set a target of Rs828.1 billion for its own-source revenues in FY26. Punjab Revenue Authority (PRA) targeted to collect Rs340 billion in FY26. Provincial surplus The Punjab government has allocated Rs740 billion under the estimated provincial surplus (EPS) for FY26, amid an understanding reached between the federal government and the International Monetary Fund (IMF). 'It is pertinent to mention that the achievement of this provincial surplus is directly related to FBR's revenue target,' said the minister. The provincial government has allocated Rs494 billion for the social sector, which accounts for 40% of the development budget. Salaries and pensions Provincial government employees to receive a 10% salary increase. Meanwhile, the provincial government increased pensions by 5% for FY26. Education The provincial government has allocated Rs148 billion for education under the development package for FY26. Whereas, Rs661 billion was budgeted for the non-development expenditure of the education sector. Laptop scheme Under the Chief Minister's Laptop Scheme, Rs15.1 billion has been earmarked to distribute laptops to 112,000 students in FY26. The provincial government has budgeted Rs40 billion for the upliftment of government schools. Moreover, the Merit Scholarship Programme will receive Rs15 billion to provide educational opportunities to deserving students. For special education, the province has allocated Rs5 billion for FY26. Moreover, Rs25 billion has been earmarked for higher education in FY26. Health Health budget for the province has been raised to Rs630.5 billion for FY26. 'Similar to last fiscal, the health sector remains pivotal for the provincial government,' the minister said. The province has allocated Rs181 billion under the development budget for the health sector, an increase of 131% as compared to the last fiscal. Whereas, Rs450 billion has been earmarked under non-development expenditure for FY26. The minister shared that the provincial government has earmarked Rs109 billion for the establishment of the Nawaz Sharif Medical District in Lahore. He shared that Rs79.5 billion has been allocated for free medicines disbursement in government hospitals. Budget FY2024-25: Punjab govt presents Rs5.4 trillion 'tax-free' budget The Punjab government has allocated Rs411.1 billion for local bodies. Whereas, Rs150 billion and Rs20 billion will be provided as special grants for waste management and municipal corporations. Social security package The provincial government has proposed to allocate Rs70 billion under a social security package. Agriculture The provincial government has allocated Rs123 billion for the development expenditure of the agriculture, livestock and irrigation sector. Whereas, Rs56.2 billion has been budgeted for non-development expenditure. The Punjab government has allocated Rs335.5 billion for the construction sector. Earlier, Business Recorder, citing its sources, informed that the upcoming provincial 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. As per the report, 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.
Business Recorder
16-06-2025
- Business
- Business Recorder
Budget FY2025-26: Punjab govt presents Rs5.3tn ‘tax-free' budget
Punjab Finance Minister Mujtaba Shuja-ur-Rehman on Monday presented the provincial budget for the financial year 2025-26 in the assembly session. A week after the federal government announced its budget, the provincial government proposed its Rs5.335 trillion budget for the upcoming fiscal year. As the provincial minister presented the budget, the opposition lawmakers of Pakistan Tehrik-e-Insaf (PTI) protested. He started the budget speech by mentioning the measures taken by the incumbent provincial government. 'I would like to congratulate the political and military leadership for safeguarding national interests during the recent tensions with India,' the minister said. 'We have completed 6,104 projects during the ongoing fiscal year,' he informed. He shared that the government is establishing the Nawaz Sharif Institute of Cancer Treatment and Research in Lahore at a cost of Rs72 billion. The provincial government allocated Rs1.24 trillion for development in FY26, an increase of 47% as compared to Rs842 billion allocated in FY25. 'This budget marks a strategic shift in Punjab's history,' said the minister. Budget FY2024-25: Punjab govt presents Rs5.4 trillion 'tax-free' budget Earlier, Business Recorder, citing its sources, informed that the upcoming provincial 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. As per the report, 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. More to follow
Express Tribune
06-06-2025
- Business
- Express Tribune
KSE-100 retreats on budget jitters, taxes
Listen to article The Pakistan Stock Exchange (PSX) witnessed a volatile session on Thursday, with the benchmark KSE-100 index retreating after hitting record highs a day earlier. Investor sentiment turned cautious due to concerns about stringent conditions linked to a new International Monetary Fund (IMF) programme, including proposed enforcement of agriculture income tax and the IMF's opposition to provincial energy subsidies. Adding to the bearish outlook were fears of aggressive fiscal measures in the upcoming FY26 federal budget. These include possible new taxes on banking and savings income, along with anticipated hikes in petroleum levies on petrol and diesel. A weakening rupee and a 10% year-on-year (YoY) decline in exports for May also dampened investor confidence. Arif Habib Corporation Managing Director Ahsan Mehanti commented that the market declined following reports of IMF pressure for strict enforcement of agriculture taxation and improved tax collection mechanisms, while resisting provincial subsidies on power. "Expectations of higher taxes on banking and savings, increased petroleum levies, rupee instability, and a sharp YoY decline in exports all weighed on sentiment," he said. The KSE-100 index closed at 121,641 points, down 157.87 points or 0.13% from the previous day. Despite the decline, the market remained within a broad range throughout the session, with an intra-day high of +483 points and a low of -281 points, according to Topline Securities. The firm noted that the range-bound activity came ahead of the long Eid holidays, following a recent rally. Topline also highlighted the most traded companies by value, with Unity Foods leading at Rs1.67 billion, followed by Engro Holdings (Rs1.24 billion), K-Electric (Rs1.03 billion), Searle Company (Rs847 million), and TRG Pakistan (Rs785 million). Arif Habib Limited (AHL) noted that despite the minor setback, the week had remained positive overall, with the market touching all-time highs. Engro Holdings (+3.24%), Pakgen Power (+10.0%), and Service Industries (+5.49%) contributed to the index's gains. On the downside, Meezan Bank (-2.11%), Systems Ltd (-1.68%), and Fauji Fertilizer (-0.5%) were key laggards. In broader developments, Prime Minister Shehbaz Sharif is scheduled to visit Saudi Arabia on June 5-6 to meet Crown Prince Mohammed bin Salman for talks on bilateral cooperation, regional security, and economic collaboration. Meanwhile, Sui Northern Gas Pipelines Limited (SNGPL) stated in a corporate briefing that its capital expenditure (capex) is expected to hover around Rs30 billion annually over the coming years. Analysts projected 120,000 points to act as a post-Eid base level for the KSE-100, with potential to move higher provided macroeconomic stability continues. KTrade Securities echoed similar views in its market wrap, observing that despite the volatility, trading activity remained strong with volume reaching 854 million shares. Leading the volume chart were K-Electric (179 million shares), Unity Foods (62 million), and WorldCall Telecom (52 million). However, slight profit-taking was noted in banking, cement, and oil and gas sectors. KTrade added that investors are expected to stay cautious in the lead-up to the federal budget announcement on June 10, 2025. JS Global analyst Mubashir Anis Naviwala reported that the index had opened positively and surged to a new intra-day high of 122,281, but profit-taking dragged it down by the close. Notable trading activity was seen in oil & gas, fertiliser, power, and banking sectors. A total of 478 companies' shares were traded. Among them, 217 closed higher, 208 declined, and 53 remained unchanged. K-Electric was the volume leader, gaining Rs0.42 to close at Rs5.83. It was followed by Unity Foods, which rose Rs0.75 to close at Rs26.89, and WorldCall Telecom, which added Rs0.05 to close at Rs1.42. Foreign investors sold shares worth Rs271.6 million, according to the National Clearing Company.
