LAHORE: The Punjab government has displayed a significant shift in budgetary priorities while amplifying its focus on the social sector with a record Rs493.5 billion, accounting for a substantial 40 per cent of the development budget, allocated towards crucial human development initiatives in the province.
The highest allocation for the social sector reflects Punjab government’s vision to develop its human resource to build a resilient, equitable, and inclusive society.
Of Rs1.24 trillion development programme for the next fiscal, the Punjab government sectoral shares in the ADP explains some Rs335.5 billion (27pc) for infrastructure development, Rs164.2bn (13pc) for production sector, Rs141.6bn (11pc) for services sector; Rs75bn (six per cent) for development projects tagged as `Others’ and Rs30.2bn (three per cent) for special programme.
The Punjab government has also included $428.54 million foreign-funded projects in the fiscal 2025-26 Annual Development Programme. The foreign-funded projects largely focus on improving water supply and sanitation, urban development, environment, irrigation, agriculture, physical infrastructure, health, education, skills development as well as information technology and governance.
Rs1.24tr development budget includes $428.5m foreign-funded projects
MAJOR INITIATIVES: The Punjab government’s department-wise major initiatives explain that the housing and urban development department will be executing a leading initiative of Apni Chhat Apna Ghar that envisages construction of 100,000 houses with a total allocation of Rs239bn. However, some Rs150bn funds have been earmarked for 2025-26.
The urban development department will also execute Rs15bn Chief Minister’s Saaf Pani Programme across the province. For this year, the government has set aside some Rs5bn for the programme. The department has also been given a Rs10bn budget for the strengthening of newly-established PHAs/WASAs across the province.
For the agriculture department, the government has introduced six new chief minister initiatives with a total cost of Rs39.5bn and allocated Rs20.7bn for 2025-26.
In the local government and community development department, the government has launched several CM initiatives including the Punjab development programme with a total allocation of Rs66bn.
The government has set aside Rs25bn for the CM’s Punjab development programme, Rs26bn for the Punjab Rural Sustainable Water Supply and Sanitation Project, Rs10bn for CM’s Programme for Establishment of Model Village (Misali Gaon) by Improved Municipal Services, Rs5bn for the Murree Development Programme (Phase-2). The LG&CD department will also be implementing a project of construction of union council offices in the province as well as establishment of landfill sites and Material Recovery Facilities (MRFs) in Gujranwala and Faisalabad.
In the environment and climate change department, the government has plans to establish a climate observatory in the province with the allocation of Rs3bn out of total Rs5bn. It will establish Environment Protection Force in 10 zones of Punjab with Rs1.948bn, installation of 25 AQMS under the World Bank’s PCAP with a seed allocation of Rs0.05bn from total allocation of Rs3bn.
Apart from these projects, the department will be executing the Air Safe project by establishing 15 Fog Cannon mobile units, 28 air quality monitors, six fuel quality testing labs and 20 vehicle emission testing equipment.
Similarly, the CM Green Credits programme includes cash rewards ranging from Rs10,000 to Rs100,000 on 32 environmental positive actions, scaling up from Lahore district to the whole Punjab, earning carbon credits on government projects. For smog mitigation, the department will upgrade and strengthen the Environment Protection Agency.
In the Punjab price control and commodities management department, the government plans establishment of 100 Sahulat Bazaars in tehsils, PFA head office in Lahore with BSL 2 lab having 50pc financing from the ADP and 50pc by the agency. It will also establish a PFA laboratory in Rawalpindi; digitisation of markets; agriculture management system digitization, commodity chain management through AI tools for forecasting; and computerisation/e-complaints in Consumer Protection Councils/courts.
In the transport and mass transit department, the Punjab government plans induction of 613 eco-friendly buses in Rawalpindi, Gujrat, Multan, Gujranwala, Bahawalpur, Sargodha, DG Khan, Sahiwal, Faisalabad and Rajanpur divisions and development of urban bus depots and allied infrastructure in Multan at a cost of Rs45.9bn against a total allocation of Rs89bn.
The department will be developing a mass transit system in Faisalabad, Lahore and Gujranwala with Rs28bn worth of funds for 2025-26 against a total allocation of Rs210bn. The department will develop urban bus depot & allied infrastructure for electric buses in Lahore under Punjab Clean Air Programme funded by the World Bank. It has initial Rs0.2bn allocation for the next fiscal out of total budgetary estimates of Rs9.5bn.
The department will also be conducting feasibility studies for establishment of high-speed rail from Lahore to Rawalpindi, establishment of ‘tourist glass train’ from Rawalpindi/Islamabad to Murree, establishment of regional railways tracks in Punjab and establishment of Air Punjab.
Published in Dawn, June 17th, 2025
