Latest news with #PunjabBudget
Business Recorder
7 hours ago
- Business
- Business Recorder
Punjab's debt stock rises Rs25bn YoY
LAHORE: The Punjab government's total debt stock has increased by Rs 25 billion, year-on-year increase of 1.5 percent, during the current fiscal year (FY). According to the Punjab Budget 2025-26 documents released on Monday, at the end of June 2025, Punjab's debt stock stood at Rs 1,710 billion, out of which Rs 1,709 billion was from external lenders, while Rs 1.29 billion was from domestic sources. Collectively, these loans represent 2.7 percent of Punjab's Gross State Domestic Product (GSDP). Moreover, Punjab's total debt stock surged from Rs 1,685 billion (reported in June 2024) to Rs 1,710 billion (reported in June 2025) in 12 months. However, the domestic loans showed a decline from Rs 1.7 billion (reported in June 2024) to Rs 1.29 billion, a decrease of 22.5 percent. In contrast, external loans witnessed a gain from Rs 1,683 billion (reported in June 2024) to Rs 1,709 billion (reported in June 2025); in dollars, it amounts to US $6.10 billion. The government's external debt primarily consists of concessional, long-term loans in foreign currency, acquired from various multilateral creditors like the World Bank, Asian Development Bank, Japan International Cooperation Agency and International Fund for Agricultural Development. Additionally, it includes loans from bilateral creditors such as China, Japan, and France. These funds are borrowed by the federal government and then channelled to the Punjab government. This debt can be categorised broadly into project loans, which are intended for long-term public infrastructure investments and programme loans, which provide medium-term budgetary support and are often tied to specific expenditure and/or policy reforms. The report highlighted that the government's external debt is derived mainly from two key sources: USD 4.81 billion from multilateral creditors, including the World Bank and the Asian Development Bank, as well as other sources; and US $1.29 billion from bilateral creditors, including China and other sources. These figures consist of the US dollar equivalent value of the outstanding debt (which is denominated in various currencies) at the end of the current Financial Year. The external debt was denominated mainly in US dollars (68 percent), followed by Special Drawing Rights (23 percent), Japanese Yen (5 percent) and other currencies (4 percent). As per the report, the agriculture, irrigation and livestock sector remained the major recipient of government borrowing, as its share constitutes 24 percent of the total outstanding followed by transport and communication 20 percent, education 19 percent, urban and community development at 17 percent, governance 11 percent, health 5 percent, energy 2 percent, tourism 1 percent, and industries and infrastructure 1 percent. Copyright Business Recorder, 2025
Arab News
14 hours 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.
Arab News
21 hours 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.
