The Punjab government has proposed a Rs5.903 trillion budget for the fiscal year 2026-27, placing strong emphasis on development, industrial growth, digital transformation and job creation while maintaining fiscal discipline. The financial plan aims to boost public services, strengthen infrastructure and expand economic opportunities through large-scale investments across key sectors. At the same time, the government has set an ambitious provincial revenue target of Rs1.21 trillion and included a surplus of Rs910 billion under its agreed financial framework.
Education received the largest allocation of Rs750 billion, reflecting the government’s focus on human development and skills enhancement. More than 100,000 laptops and merit-based scholarships will continue for students across the province. Meanwhile, the health sector has been allocated Rs500.62 billion, while Rs507 billion has been earmarked for clean water, sanitation and urban development projects to improve living standards and public welfare.
The budget also seeks to provide relief and strengthen governance through a proposed 7% increase in salaries for government employees and a 3.5% rise in pensions. In addition, Rs803 billion has been allocated for local government institutions, while Rs252 billion will support law and order initiatives. Special funding has also been reserved for youth development, skill-building programs, women’s empowerment and social welfare schemes, including the Himmat Card initiative.
A major portion of the budget targets industrial expansion and export growth, with more than Rs783 billion expected to be invested in promoting the industrial economy. New policies for special economic zones, reduced land lease rates and sector-specific incentives aim to attract private investment. The government expects these measures to generate thousands of jobs, increase exports and strengthen industries including garments, leather, footwear, pharmaceuticals, sports goods and engineering products.
Infrastructure and public development remain central priorities, with over Rs1.24 trillion allocated for development projects and Rs168 billion reserved for the transport sector. The government plans to introduce 2,000 electric buses while investing heavily in sports, culture and urban facilities. Notable initiatives include a Rs50 billion allocation for Maryam Nawaz Sports City Lahore and Rs55 billion for a Film City Program designed to support creative industries and tourism.
The budget further highlights Punjab’s commitment to digital governance, e-commerce and sustainable growth. Programs supporting online trade, industrial modernization, wastewater treatment and renewable energy are expected to enhance competitiveness and environmental standards. Through these combined measures, the government aims to accelerate economic activity, attract private investment, expand exports and create substantial employment opportunities across the province.