LAHORE: The Punjab government has announced that no new taxes will be imposed in its upcoming budget, marking the third consecutive year the province has taken this stance.

The announcement was made by Finance Minister Mujtaba Shujaur Rehman during a pre-budget roundtable conference, the first of its kind, organised by the Punjab Finance Department. He said the provincial government is finalising a public-centric financial plan and is all set to officially present this budget on June 16.

This year’s budget preparation marks a historic shift in governance as the government brought together all major stakeholders, including representatives from international donors, chambers of commerce and industries, academia, agriculture and textile associations, media, and civil society, to present their problems and proposals directly.

The minister assured participants that the conference was not just a cosmetic exercise, promising that the recommendations would be integrated into the final budget as much as possible. He added that the government intends to move this consultative session to May in future years to allow even more time to incorporate public feedback.

Third consecutive tax-free budget likely on 16th focusses jobs, industrial growth

The upcoming budget places a massive emphasis on economic growth, with providing employment opportunities and investing in industrial infrastructure serving as the government’s top priorities.

To fund these initiatives without burdening citizens, the minister explained that the government is focusing on broadening the tax net, boosting industrialisation, creating economic zones, and improving the ease of doing business, rather than levying new duties.

He noted that while the resources available to meet the needs of Punjab’s 130-million-strong population are limited and despite pressure from the IMF, the current leadership remains “absolutely unwilling” to impose fresh tax burdens on commoners.

This financial strategy comes on the heels of an incredibly challenging fiscal year marked by global economic pressures and natural disasters. Rahman highlighted that Punjab recently survived the century’s worst floods, which devastated 27 districts. The provincial government managed the entire rehabilitation process using its own resources without federal financial aid.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) regional chairman Zaki Aijaz called for reducing the industry production cost which, he claimed, was 30-35 per cent more than other countries in the region. He also bemoaned higher taxes in Punjab as compared with other provinces which was discouraging industrialisation in the province.

Pakistan Hi-Tech Hybrid Seed Association leader Shahzad Ali Malik lamented that on one hand the government pledges to promote mechanisation of the agriculture sector and on the other it has imposed 5pc tax on those renting out farm machinery to small farmers and 16pc tax on agriculture advertisements.

Anjum Nisar, former president of Lahore Chamber of Commerce and Industry, highlighted the need for developing water reservoirs by the provinces instead of just relying on the federation.

Rice exporter Imran Sheikh called for making easy import of used kabota (rice harvester) and cutting taxes on it to reduce 30pc crop losses because of use of wheat harvesters for the purpose.

Potato Growers’ Society president Maqsood Jutt suggested introducing technology for maize processing to save its use as human food instead of poultry feed.

Minister Rahman assured participants of incorporating their proposals into the budget.

Published in Dawn, June 9th, 2026