Latest news with #MujtabaShujaurRehman
Arab News
6 days ago
- Business
- Arab News
Pakistan's Punjab unveils $18.9 billion budget, increases development spending by 47%
ISLAMABAD: Pakistan's largest and richest Punjab province on Monday unveiled its Rs5.33 trillion [$18.9 billion] budget for the fiscal year 2025-26, increasing its development spending by 47% and refraining from imposing new taxes on the masses. Punjab, home to more than half of Pakistan's over 240 million people, plays a dominant role in the national economy. It contributes roughly 60% to Pakistan's gross domestic product and receives the largest share of federal funds under the National Finance Commission (NFC) Award. Last year, Punjab's budget for FY2024–25 was about $19.6 billion, with a development outlay of $3 billion. Punjab's budget is seen as politically significant for the ruling Pakistan Muslim League-Nawaz (PML-N) party of Prime Minister Shehbaz Sharif, which has faced tough economic and governance challenges since forming its government at the center last year. 'The total outlay for [Punjab's] 2025-2026 budget is Rs5,335 billion [$19.2 billion],' Punjab Finance Minister Mujtaba Shuja-ur-Rehman said while presenting the budget in the provincial assembly. Rehman said the provincial government was presenting a 'record-breaking development budget' this time. 'For which the total amount recommended is Rs1,240 billion [$4.36 billion], which is more than 47% compared to the current financial year,' he added. The minister said the FY26 budget did not contain any new taxes on the masses, adding that the government wanted to widen the tax net to increase revenue. Punjab's own-source revenue is projected at Rs828.1 billion ($2.94 billion), including Rs524.7 billion ($1.86 billion) in tax receipts and Rs303.4 billion ($1.08 billion) in non-tax receipts. According to budget documents seen by Arab News, the Federal Board of Revenue (FBR) has set a national target of Rs14,131 billion ($50.11 billion), with Punjab's share estimated at Rs4,062.2 billion ($14.4 billion). Rehman said the province has proposed a significant increase in education and health budgets to benefit the people of Punjab. HEALTH, EDUCATION BUDGETS 'The total allocation for the education sector is Rs811.8 billion ($2.88 billion), which is 21% higher than last year, where development allocation stands at Rs148.5 billion ($526 million), the highest in the province's history and 127% higher than the previous year,' he said. He said Punjab would launch new education projects while continuing existing ones, allocating Rs15 billion ($53 million) for scholarships for high-achieving students and continuing with its Rs5.9 billion ($21 million) Undergraduate Scholarship Programme. 'To address infrastructure needs, Rs40 billion ($142 million) is set aside for building classrooms, while a Rs35 billion ($124 million) Education Delivery Programme aims to enhance access and quality across Punjab,' Rehman said. The minister said the provincial government has allocated Rs630.5 billion ($2.24 billion) for the health sector in this budget, which is 17% higher than last year. 'Of this, Rs181 billion ($641 million) is earmarked for development, reflecting a 41% increase over the previous year,' Rehman said. The minister said Punjab had allocated Rs494 billion ($1.75 billion) for the social sector, which accounted for 40% of the development budget. Rehman said provincial government employees' salaries would be increased by 10%, while pensions have been raised by 5% and the proposed increase in the minimum wage is from Rs37,000 ($131) to Rs40,000 ($142) per month. The minister said that the new budget has given special priority to Pakistan's agriculture sector. 'In the next financial year, Rs123 billion ($436 million) are allocated for development in the agriculture, livestock, irrigation, and water sectors, while Rs56.2 billion ($199 million) is allocated for non-development expenses,' he said. The provincial minister said to ensure a climate-resilient Punjab, a record Rs795 billion (approximately $2.82 billion) worth of projects were included in the budget this year, accounting for 64% of the overall development budget. Pakistan's top revenue-generating Sindh province last Friday unveiled its Rs3.45 trillion ($12.41 billion) new budget while the northwestern Khyber Pakhtunkhwa (KP) province announced a surplus budget of Rs2,119 billion ($7.63 billion) for the next year on the same day.
Express Tribune
6 days ago
- Business
- Express Tribune
Punjab unveils Rs5,335bn tax-free budget for 2025-26
Punjab Finance Minister Mujtaba Shuja ur Rehman on Monday presented a Rs5,335 billion budget for fiscal year 2025–26 in the provincial assembly, terming it a "people-friendly" plan aligned with the development vision of Chief Minister Maryam Nawaz Sharif. The provincial cabinet, led by Punjab Chief Minister Maryam Nawaz Sharif, approved the budget ahead of the session. CM Maryam addressed the 27th provincial cabinet meeting, announcing zero-tax budget for fiscal year 2025–26. Chief minister said the budget reflects 'every rupee as a public trust' and is guided by 'accountability before God.' In her address, Maryam Nawaz highlighted a 47% increase in the Annual Development Programme (ADP), taking it to Rs1,240 billion, while ensuring no new taxes were introduced. 'This is a zero-tax budget and also the largest development budget in Punjab's history,' she said. She noted that despite record allocations, 'no financial scandal has emerged,' crediting improved financial discipline, e-tendering processes, and a focus on transparency and good governance. 'Instead of raising taxes, we will focus on expanding the tax net,' she said, while expressing dissatisfaction over the Punjab Revenue Authority's performance, adding that 'there is room for improvement.' CM Maryam Nawaz outlined several achievements and goals, including the launch of 100 innovative development projects, 94 new public programmes, and the construction or expansion of 12,000 kilometres of roads. '700 roads are currently under construction,' she added. The chief minister reaffirmed her government's focus on health and education, promising provision of free medicines and infrastructure upgrades in public schools. She also announced that the minimum wage had been set at Rs40,000 and called for the digitalisation of wage systems. Maryam Nawaz credited her team's efforts, applauding the senior minister and the chief secretary's performance, noting that her father, former Prime Minister Nawaz Sharif, also praised the cabinet's work. 'We declared an emergency in Punjab and delivered. We met IMF conditions and still presented a Rs740 billion budget surplus,' she said. She also hinted at a possible performance-based bonus system for civil servants and said the province had achieved a 94% reduction in local borrowing. Calling the 2025–26 budget a 'historic public service package,' she concluded, 'The work ethic in Punjab has transformed. Power is a trust from God; serving people is our mission.' Senior Minister for Planning & Development Marriyum Aurangzeb and Finance Minister Mujtaba Shuja ur Rehman gave detailed briefings during the session. In a post on social platform X, Senior Minister Marriyum Aurangzeb said the Annual Development Programme (ADP) had been increased by 47%—from Rs842 billion to Rs1,240 billion—despite a 'compressed' overall fiscal space. Government operational expenses rose by just 3%, even with salary and pension hikes. Punjab Budget Highlight Chief Minister Punjab Maryam Nawaz Sharif has approved Punjab Annual budget. Despite a comparatively compressed budget, the ADP has increased by 47% from 842 bn to 1240 bn while government operational expenses rose only by 3%, even after salary & pension… — Marriyum Aurangzeb (@Marriyum_A) June 16, 2025 Aurangzeb described the budget as a historic and strategic realignment of priorities, calling it a departure from outdated traditions under the chief minister's 'fearless and reformist leadership.'
Arab News
6 days ago
- Business
- Arab News
Punjab to unveil new budget today, pledges ‘people-friendly' spending amid economic pressures
ISLAMABAD: Pakistan's Punjab province, the country's most populous and economically crucial region, will present its budget for the 2025–26 fiscal year today, Monday, with officials promising a 'people-friendly' plan, Radio Pakistan reported. Punjab Finance Minister Mujtaba Shuja-ur-Rehman is scheduled to table the budget in the provincial assembly in Lahore after the cabinet's formal approval. Punjab's budget is seen as politically significant for the ruling Pakistan Muslim League-Nawaz (PML-N) of Prime Minister Shehbaz Sharif, which faces tough economic and governance challenges nationwide. 'This budget reflects Chief Minister Maryam Nawaz Sharif's vision to prioritize people's welfare and accelerate development projects across the province,' Rehman was quoted as saying by state-run Radio Pakistan. Punjab, home to over half of Pakistan's 240 million people, plays a dominant role in the national economy, contributing roughly 60 percent of the GDP. It also receives the largest share of federal funds under the National Finance Commission (NFC) Award. Last year, Punjab's budget for FY2024–25 was about $19.6 billion, with a development outlay of $3 billion. Officials have said the upcoming budget will maintain a focus on infrastructure upgrades, agriculture support and social welfare schemes to help shield the population from rising prices. Local media reports suggest the government could announce new initiatives in education, health care and urban transport, along with efforts to address power shortages in rural areas.
Express Tribune
12-06-2025
- Business
- Express Tribune
'No new tax in Punjab budget'
The Punjab government will present its annual budget for the fiscal year 2025-26 on June 16, following a short delay from the previously announced date of June 13. Finance Minister Mujtaba Shujaur Rehman confirmed the change, citing the need for additional preparation. He reiterated that no new tax will be introduced in the budget. Estimated at over Rs1.2 trillion, the fiscal plan is expected to feature a record-breaking development outlay, with strong emphasis on health, education, infrastructure and tourism. According to official sources, the finalised draft includes more than 850 development schemes, with a total allocation exceeding Rs353 billion. This includes approximately Rs161 billion for 520 ongoing projects, around Rs135 billion for 333 new schemes, and over Rs57 billion allocated to six major development projects. The Punjab Planning and Development Department has outlined a wide distribution of funds across key sectors. Urban development is expected to receive Rs145 billion, while the local government and community development department is proposed to receive Rs142 billion. The road sector is set to receive Rs120 billion, with Rs90 billion earmarked for health and population welfare. The school education department is likely to receive Rs100 billion, while agriculture is expected to get Rs80 billion. Transport and specialised healthcare are set to be allocated Rs70 billion each. Planning and development, and governance and IT are each proposed to receive Rs40 billion. Additional allocations include Rs40 billion for irrigation, Rs25 billion each for public buildings and higher education, and Rs30 billion for tourism - a 600 per cent increase over the previous year. The industries sector is proposed to receive Rs12 billion and fisheries Rs10 billion, while wildlife would also be allocated Rs10 billion. The environment sector is expected to receive Rs15 billion, skill development Rs12 billion, sports Rs7.6 billion, energy Rs7.5 billion, water supply and sanitation Rs6 billion, and price control and commodities management Rs5.51 billion. Forestry and livestock are each proposed to receive Rs5 billion, while human rights, minority affairs, and literacy are each set to receive Rs4 billion. Social welfare is allocated Rs3 billion, special education Rs2 billion, and information and culture Rs5 billion. The development budget includes Rs893 billion in local funding and Rs184 billion in foreign assistance. An additional Rs125 billion is reserved for development initiatives of the chief minister. Key projects under the upcoming budget include the expansion of Nawaz Sharif Medical City in Lahore, where new hospitals will be constructed under a public-private partnership model. The government also plans to roll out extensive sanitation and drinking water programmes across the province. Infrastructure development remains a central priority. The provincial transport network will be expanded to additional cities, while road and urban infrastructure projects are planned in 66 cities. The sources confirmed that proposals for new taxes, submitted by the Board of Revenue and the Punjab Revenue Authority, had been rejected by Chief Minister Maryam Nawaz Sharif. Instead, the government is reviewing the current tax structure to assess possible adjustments in existing rates. The Punjab Assembly is scheduled to convene on June 16 for the presentation of the budget.
Business Recorder
12-06-2025
- Business
- Business Recorder
Punjab to present ‘tax-free budget' on 16th: minister
LAHORE: The Punjab government will present its annual budget for the fiscal year 2025–26 on June 16, following a short delay from the initially announced date of June 13. Finance Minister Mujtaba Shujaur Rehman confirmed the change during the Punjab Revenue Authority performance review meeting on Wednesday. He also reiterated that the expansion of the tax net will be ensured to increase revenue in the next fiscal year. Meanwhile, according to the sources, the upcoming budget will be tax-free, and no new taxes will be introduced. Estimated at over Rs1,200 billion, the new fiscal plan is expected to feature a record-breaking development outlay emphasising health, education, infrastructure, and tourism. The new budget will include over 850 development schemes and the key projects include the expansion of Nawaz Sharif Medical City in Lahore where new hospitals will be constructed under a public-private partnership model. The government also plans to roll out extensive sanitation and clean drinking water initiatives throughout Punjab. Infrastructure development remains a central priority. Moreover, the provincial transport network will be expanded to additional cities, while road and urban infrastructure projects are planned for 66 cities across the province. These initiatives reflect the government's strategy to improve public services and promote inclusive growth without imposing new tax burdens on citizens, said sources. The sources also confirmed that proposals for new taxes, submitted by the Board of Revenue and the Punjab Revenue Authority, were rejected by Punjab Chief Minister Maryam Nawaz Sharif. The government is instead reviewing the current tax structure to identify adjustments in existing rates where necessary. The Punjab Assembly is scheduled to convene on June 16 for the formal presentation of the budget. Copyright Business Recorder, 2025
