Punjab to unveil new budget today, pledges ‘people-friendly’ spending amid economic pressures

A laborer pushes his cart carrying canisters at a market in Lahore on June 10, 2025. (AFP)
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Updated 16 June 2025
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Punjab to unveil new budget today, pledges ‘people-friendly’ spending amid economic pressures

  • Punjab, home to over half of Pakistan’s 240 million population, contributes roughly 60 percent to GDP
  • Punjab’s budget for fiscal year 2024–25 was about $19.6 billion, with development outlay of $3 billion

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.


Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport

Updated 23 February 2026
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Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport

  • Pakistan is a cash-dominated market where a significant portion of transactions in the informal sector are made without any taxes, officials say
  • The move comes amid Pakistan’s efforts to introduce a cashless model at airports under which only digital service providers can provide services

KARACHI: Aik, Pakistan’s first Islamic digital bank, has enabled fully digital payments at Islamabad International Airport to offer travelers and passengers secure, Shariah compliant digital transaction facility.

The development comes amid Pakistan’s efforts to introduce a cashless model at airports across the country, under which only digital service providers can provide services to customers.

Aik, a subsidiary of Bank Islami, said it has onboarded merchants across the Islamabad airport and integrated QR code deployments at key touchpoints to allow passengers and visitors to make secure, seamless, and Shariah-compliant digital transactions at all counters, retail outlets, and service points.

It said the implementation complies with the regulations and framework set by the State Bank of Pakistan (SBP) and is a working model for a large-scale adoption of cashless systems in public infrastructure.

“This deployment reflects our commitment to building practical digital infrastructure that improves everyday transactions,” Aik Chief Officer Ashfaque Ahmed said in a statement.

“By enabling a fully cashless environment at a major national gateway, we are supporting efficiency, transparency, and financial inclusion at scale. This is not only a project; it is a foundation for Pakistan’s cashless future.”

Pakistan is a cash-dominated market where a significant portion of transactions, particularly in the informal sector, are conducted in cash. Officials say many of these transactions are aimed at avoiding taxes.

In recent years, the SBP has taken steps to ensure a transition toward a more cashless economy so that transactions are more traceable, reducing chances of tax evasion and corruption.

By digitizing Islamabad airport, aik said it continues to invest in secure and accessible financial solutions that “expand digital participation and support national economic modernization.”