LAHORE DIVISION

Lahore | ReNews Pakistan The Punjab government has proposed allocating Rs 752 billion for development projects in the annual budget for fiscal year 2026 27. The total size of the provincial budget has been set at Rs 5.9 trillion, with priority given to public welfare, infrastructure, health, education, transport and urban facilities. According to budget documents, the Punjab government intends to move forward with ongoing and new projects through development spending during the next fiscal year. The development budget includes projects across various sectors aimed at improving urban facilities, strengthening public service delivery and promoting economic activity. The government has also allocated significant funds for major projects in the health sector, including the Nawaz Sharif Medical District, cancer hospitals, children’s hospitals and emergency services-related initiatives. Similarly, funds have also been proposed for mass transit, the electric bus programme and regional railway projects in the transport sector. Experts say the proposed Rs 752 billion allocation for development projects could have a positive impact on construction activity, urban development and employment opportunities across the province. Real estate circles believe that if development funds are used in a timely and transparent manner, improvement may be seen in land values, housing projects and commercial activity across major cities as well as various districts. The Punjab government says the budget has been prepared with public welfare, development and economic stability in mind, while efforts will be made to ensure the provision of basic facilities and long-term growth in the province through development projects.

Lahore | ReNews Pakistan Punjab has presented its annual budget for 2026 27. The budget places significant emphasis on reforming the property related tax system to make it more effective and enhance provincial revenue. According to official budget documents, the Government of Punjab has set a target to improve collections through long-discussed policy changes in the Urban Immovable Property Tax system, expansion of the tax base and digital reforms. The budget strategy states that the tax net will be expanded through measures aimed at increasing digitization and efficiency in Punjab’s revenue system. The policy is intended to make the process of property records, valuation and tax collection more transparent and effective. The Punjab government has already made a policy decision to shift the basis of property tax from rental value to capital value. Later, a self-assessment system was also introduced for Urban Immovable Property Tax. According to official documents, these measures are part of efforts to modernize the tax system in line with the actual value of properties. Real estate experts say that if the property tax system is implemented through digital records and transparent valuation, it could increase provincial revenue on the one hand, while also improving property transactions and ownership records on the other. However, market circles believe that the government must avoid placing an additional burden on ordinary citizens and small property owners while implementing tax reforms.

Lahore | ReNews Pakistan The Punjab government has proposed a revised sales tax regime for restaurants in the Punjab Finance Bill 2026, which would increase the tax rate on digital payments.Under the proposed framework, payments made through debit cards, credit cards, mobile wallets or QR codes will be subject to an 8 percent sales tax, up from the existing 5 percent. In contrast, all other payment methods will attract a higher 16 percent tax rate. The proposed change would raise the sales tax on restaurant payments made through debit cards, credit cards, mobile wallets and QR codes from 5 percent to 8 percent, increasing the cost of digitally paid dine-in and takeaway transactions while still keeping them lower than the 16 percent rate applicable to other payment methods. The move is expected to generate additional revenue for the provincial government and further encourage documentation of restaurant sales through formal payment channels. The lower 5 percent rate had already been in place under the existing tax structure, and the new bill seeks to revise it upwards.