Lahore Division

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.

Lahore | ReNews Pakistan
The Punjab government has prepared a Rs 1,220 billion mega economic plan for the new financial year, placing construction, infrastructure and development projects at the centre of its economic revival strategy. Prepared on the special instructions of Punjab Chief Minister Maryam Nawaz Sharif, the plan is being described as the flagship vision of the provincial budget, aimed at accelerating construction activity, industrial growth, private investment and large scale infrastructure development across the province.
According to government sources, Punjab’s key priority in the new financial year will be to boost economic activity, support the construction sector, activate industrial zones and generate new employment opportunities through development projects. For this purpose, the Economic Transformation Plan is being made a central component of the provincial budget.
Under the proposed plan, Rs 300 billion has been earmarked for the Punjab Infrastructure and Guarantee Fund. The fund is designed to provide financial support for major development schemes, roads, industrial infrastructure, business facilitation facilities, private investment and projects launched under public-private partnership arrangements. The government believes that investment in infrastructure will not only stimulate the construction industry but also increase activity in allied sectors such as cement, steel, transport, labour and other related industries.
The proposed establishment of the Punjab Wealth Fund, with an allocation of Rs 700 billion, is also a major part of the plan. The fund is intended to promote long-term investment, economic growth and projects that could help increase Punjab’s revenue, industrial output and employment opportunities in the future.
South Punjab has also been given special importance in the mega economic plan. The government plans to establish new industrial clusters and agro-processing zones in the region, a move expected to increase construction activity and require the development of industrial infrastructure, warehouses, factories, processing units and related facilities. These initiatives are expected to promote investment, local employment and value addition in agricultural production.
Major measures have also been proposed to promote food exports and the agro-industry. According to the government, new facilities, processing zones and logistics infrastructure will be developed to link agricultural production with a modern industrial system, enabling Punjab to become a hub for export-oriented agricultural and industrial products.
The plan also includes a proposed allocation of Rs 30 billion for IT infrastructure and data centres. Under this initiative, work will be carried out on modern digital infrastructure, technology parks, data centres and related facilities. The government maintains that technology-based infrastructure will attract new investment to Punjab and create employment opportunities for young people.
Another Rs 30 billion allocation has been proposed for power sector reforms and private investment. Improvements in the energy sector are being described as essential for industrial and construction activity, as better electricity supply and reduced energy costs would directly benefit industries, commercial centres and development projects.
Investment through public-private partnerships will also remain a key feature of the economic plan. The government aims to involve the private sector in major development projects to accelerate construction work. In addition, a proposal has been made to provide loans of up to Rs 5 billion for industrial development, while small industries will also receive financial assistance to help them participate in construction, industrial and productive activities.
Government circles say Punjab’s Rs 1,220 billion Economic Transformation Plan is not merely a financial package but a coordinated strategy to advance construction, infrastructure, industrial development, technology and investment across the province. Its implementation is expected to speed up major development projects, inject fresh momentum into the construction sector and generate broad-based economic activity in Punjab.