Rs6tr Punjab budget under preparation

LAHORE: Punjab is preparing an annual budget of close to Rs6 trillion for the 2026-27 fiscal year, with development spending estimated at about Rs1.45 trillion, according to official estimates cited in planning discussions.

The proposed development outlay includes around Rs980 billion for core development programmes, Rs320 billion for other schemes and Rs150 billion for foreign-funded projects. The provincial government is also working on a Rs100 billion package aimed at supporting small businesses and industrial development, with concessional financing and subsidy measures under consideration for selected sectors of the economy.

According to the proposals under preparation, the package is intended to encourage industrial expansion, exports and job creation. Small and medium enterprises, manufacturing, pharmaceuticals and agro-processing are expected to be among the sectors considered for targeted financial support. The plan includes subsidised loans, and some sectors may receive financing at interest rates of up to five per cent.

Separate financing structures are being reviewed for small, medium and large industrial projects. Export-focused industries are likely to be offered long-tenor, low-cost borrowing to help expand production and improve trade performance, with repayment periods of five to 10 years under consideration.

Development priorities

Transport is expected to remain the largest component of the development programme, with about Rs303 billion proposed for major infrastructure and mobility schemes across Punjab. Officials say the emphasis will stay on strengthening connectivity and urban transport systems.

For Lahore, the budget planning includes feasibility work for two additional metro corridors, the Blue Line and the Purple Line. If implemented as proposed, the expanded mass transit network in the city would extend to 97.1 kilometres. Planning documents show the Blue Line at 24 kilometres, with both elevated and underground sections, while the Purple Line is projected at 19 kilometres and would link Data Darbar with Allama Iqbal International Airport through key urban areas.

The proposals also provide for spending on local government development, model villages, road rehabilitation, clean water schemes and smart police stations in cities across the province. Officials have suggested Rs250 billion for the local government sector, in addition to funding for sewerage projects, infrastructure monitoring systems and improved urban services at the union council level.

Development planning for the next fiscal year also covers education, health, rural development, sanitation and wider public welfare, indicating an effort to distribute investment across both urban and rural areas. The Punjab Assembly is scheduled to begin deliberations on the budget after presentation of the Finance Bill later this month.