The Punjab government is expected to propose an annual budget of nearly Rs6 trillion, according to sources familiar with the matter. Citing official estimates, sources said authorities were working on an outlay of around Rs1.45 trillion for development spending.
Development Expenditure Breakdown
Planning documents suggest Rs980 billion may be earmarked for core development programmes, Rs320 billion for other schemes, and Rs150 billion for foreign-assisted projects. The government is set to propose a Rs100 billion special package for small businesses and industrial development in the upcoming 2026-27 provincial budget, with concessional financing and subsidy support planned for key sectors of the economy.
Industrial Growth and Employment
The sources indicated the proposed package, aimed at promoting industrial growth, exports, and employment opportunities, was expected to be part of the budget proposals currently in the final stage of preparation. Under the proposal, small and medium enterprises (SMEs), manufacturing, pharmaceutical, and agro-processing sectors are likely to be offered targeted financial facilities. The plan includes concessional loans and subsidies, with some sectors proposed to receive financing at up to five per cent interest.
The sources disclosed that separate financial models were under consideration for small, medium, and large-scale industrial projects. Export-oriented industries are expected to be offered long-term, low-cost financing to strengthen production capacity and external trade performance. Proposals indicating repayment periods of five to ten years are under consideration.
Transport and Infrastructure
Multiple development priorities are being set ahead of the presentation of the financial plan. Transport is expected to remain the leading sector in the development programme, with around Rs303 billion proposed for major infrastructure and mobility schemes across the province. Officials say the focus will remain on improving connectivity and urban transport systems.
Large-scale mobility projects for Lahore are part of the proposals, including feasibility work for two new metro corridors: the Blue Line and Purple Line. The expanded network is expected to extend Lahore's mass transit system to 97.1 kilometres. The proposed Blue Line is planned to span 24 kilometres, including elevated and underground sections, while the Purple Line is expected to cover 19 kilometres, connecting key urban nodes from Data Darbar to Allama Iqbal International Airport.
Local Government and Public Welfare
The budget proposals also include allocations for local government development, model villages, road rehabilitation, clean water schemes, and smart police stations in cities across the province. Officials have proposed allocation of Rs250 billion for the local government sector, along with additional funding for sewerage work, infrastructure monitoring systems, and urban services upgrades at the union council level.
The development planning includes initiatives in education, health, rural development, sanitation, and public welfare, reflecting an effort to balance urban and rural investment priorities in the coming fiscal year. The Punjab Assembly will begin deliberations on the budget after the presentation of the Finance Bill later this month.
