Punjab Finance Minister Mujtaba Shuja ur Rehman, on Monday, unveiled the budget for the fiscal year 2025-26, announcing a 10% increase in the salaries of government employees.
During his budget speech at the Punjab Assembly, the finance minister stated that salaries for employees from Grade 1 to 22 are being raised by 10%. He further added that a 5% increase in pensions has also been approved.
Earlier in the day, Mujtaba presented the province’s ‘zero-tax’ budget, totaling Rs5,335 billion.
In a prior statement, the minister had indicated that the budget would reflect Chief Minister Maryam Nawaz Sharif’s development vision and would be “people-friendly.”
Ahead of the assembly session, Punjab Chief Minister Maryam Nawaz formally approved the provincial budget.
“Despite a comparatively compressed budget, the ADP [Annual Development Programme] has increased by 47% from 842 bn to 1240 bn while government operational expenses rose only by 3%, even after salary & pension increases,” Punjab senior minister Marriyum Aurangzeb shared in an X post.
In another X post, Aurangzeb highlighted: “Under Chief Minister Punjab’s fearless and reformist leadership, Budget 2025-26 breaks free from outdated traditions.”
She stated that the 2025-26 budget signifies a historic and strategic realignment of priorities, featuring a record and highest-ever development allocation of Rs1,240 billion within a total outlay of Rs5,335 billion.
The minister affirmed that the provincial budget is a “zero tax budget,” meaning “NO NEW TAX has been imposed nor has any tax rate been enhanced, with a roadmap to increase the Punjab Tax net.”
