Punjab Province

Lahore | ReNews Pakistan
The expansion of new and unplanned housing societies in Punjab has affected agricultural land on a large scale. According to available reports, nearly 225,000 acres of valuable agricultural land in the province have been consumed by housing schemes and unplanned urban expansion over the past few decades.
Reports suggest that this land was converted into around 6,000 housing schemes, of which nearly 4,000 were allegedly developed illegally. The situation is being described as a matter of concern for the province, as Punjab plays a central role in the country’s agricultural production, food requirements and rural economy.
In terms of kanal, 225,000 acres are equal to nearly 1.8 million kanal, while in hectares this area is around 91,000 hectares. Experts say the conversion of agricultural land into residential and commercial use on such a large scale could become a threat to future food production and the agricultural economy.
According to officials, unplanned urban expansion has not only raised concerns over a possible decline in agricultural output but has also worsened environmental issues. The reduction of agricultural land affects green cover, while new settlements, roads, construction and traffic pressure increase smog, pollution and the burden on urban facilities.
The Punjab government has prepared land use and zoning plans for 32 districts to stop this trend. Under these plans, separate zones have been allocated for residential, commercial and industrial use. Officials say no new housing scheme or commercial project will be allowed on land that has not been approved or notified for that purpose under the master plan.
Real estate observers believe this measure may help stop the spread of illegal housing schemes, protect agricultural land and regulate urban development. However, strict monitoring by local administrations, development authorities and municipal institutions will be necessary for effective implementation.
Experts say Punjab will need to focus on planned urban growth, vertical construction, approved residential projects and protection of agricultural land instead of horizontal expansion, so that urban needs can be met without damaging the province’s agricultural base.
Overall, reports that nearly 225,000 acres of agricultural land have been affected by the expansion of housing societies in Punjab show that maintaining a balance between real estate development and agricultural protection has become an urgent need for the province.

Lahore | ReNews Pakistan
The Punjab government has proposed significant changes to agricultural taxation and irrigation charges under the Punjab Finance Bill 2026, introducing higher tax rates on larger landholdings and orchards while offering targeted relief measures aimed at supporting the province’s agricultural economy.
According to the proposed amendments to the Agriculture Income Tax Rules, agricultural landholdings of up to 12.5 acres will remain exempt from agricultural tax. However, landowners possessing more than 12.5 acres and up to 25 acres will face a substantial increase in taxation, with the rate proposed at Rs 1,000 per acre compared to the existing Rs 300 per acre.
Similarly, landholdings exceeding 25 acres and up to 50 acres will also be taxed at Rs 1,000 per acre, replacing the current rate of Rs. 400 per acre. For holdings above 50 acres, the proposed tax has been increased from Rs 500 to Rs 1,000 per acre.
The government has also proposed higher taxation on orchards. Under the new framework, mature orchards would be taxed at Rs 1,000 per acre, up from the current Rs 600 per acre. Tax on unirrigated orchards is proposed to increase from Rs 300 to Rs 500 per acre.
In another major policy shift, the provincial government has proposed replacing the existing crop based water cess mechanism with a uniform flat rate system. Under the proposed structure, water charges will be levied at Rs. 1,650 per acre during the Kharif season and Rs 850 per acre during the Rabi season, regardless of crop type.
Officials say the reforms are intended to simplify tax administration, improve revenue collection and ensure a more uniform framework for agricultural taxation and irrigation charges across the province.
At the same time, the government has proposed relief measures for the agriculture sector by abolishing the cotton fee currently charged on the arrival of raw cotton at ginning factories. Authorities believe the move will help revive the cotton industry, which has faced severe challenges in recent years due to declining production levels.
According to government estimates, falling cotton output has led to the closure of numerous ginning units, particularly in South Punjab, affecting farmers, industrial activity and employment. The proposed abolition of the cotton fee is expected to reduce operational costs for the sector and encourage greater agricultural and industrial activity.
The proposed measures will be considered as part of the provincial budget process for FY2026-27 and, if approved, will significantly reshape Punjab’s agricultural taxation and irrigation revenue framework while providing targeted support to key segments of the farming economy.

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.