Punjab allocates Rs91.9b for agriculture

The Punjab government has allocated Rs91.9 billion for agriculture in its budget for fiscal year 2026-27, as part of a combined Rs132.54 billion set aside for development and non-development spending on the agriculture, livestock, and fisheries sectors.

Government officials describe these sectors as the backbone of the province's economy, food security and export earnings. Provincial Finance Minister Mian Mujtaba Shujaur Rehman said that under the broader Economic Transformation initiative, the government plans to invest around Rs481 billion across these sectors over the next three years, a move expected to draw an additional Rs134 billion from private investors. It would take total investment to Rs615 billion, with the aim of lifting agricultural production, exports, employment and rural incomes, he said.

In the agricultural allocation of Rs91.9 billion, mechanisation receives the largest share. The Chief Minister Punjab Green Tractor Programme will get Rs7.7 billion for low-powered tractors under its fourth phase and Rs9.9 billion for high-powered tractors under a new fifth phase.

The Punjab Climate Resilient and Low Carbon Agriculture Mechanisation Project, running from 2025-26 to 2030-31, has been allocated Rs36.1 billion, largely financed through Rs34.7 billion from the Asian Development Bank (ADB) alongside a Rs1.4 billion provincial share.

Farmer financing also features prominently, with the second phase of the Chief Minister Punjab Kissan Card programme, covering 2026-27 to 2027-28, receiving Rs10 billion. A further Rs10.6 billion has been set aside for agricultural subsidies, taking the total to Rs91.9 billion.

The second phase of the Work for Punjab internship scheme for agricultural graduates, spanning 2026-27 to 2027-28, has been allocated Rs2.7 billion, while the second phase of the Model Agriculture Malls programme, from 2025-26 to 2026-27, will receive Rs1.08 billion.

On the livestock front, the CM Punjab Herd Transformation Programme will receive Rs4.44 billion next year, building on this year's Rs5.2 billion allocation that included the import of 4,385 high-quality bulls. Under its second phase, Livestock Cards will be issued to 300,000 farmers, while 120,000 livestock-owning rural women will get Rs3.12 billion in interest-free loans.

Veterinary services will also see a major push, with 146 hospitals being upgraded and 482 Mobile Veterinary Dispensaries established at a combined cost of over Rs10.17 billion, serving more than 2.4 million livestock farmers. A separate project will upgrade one veterinary hospital per tehsil to a model status at a cost of Rs4.85 billion, while a livestock farmer training project worth Rs1 billion will also be rolled out.

The government has also allocated Rs620 million to fight foot and mouth disease (FMD), including the creation of an FMD-Free Zone in Bahawalpur, and Rs610 million for an internship programme benefiting 1,000 graduates.

Under the Economic Transformation Plan, the Live Meat Programme will receive Rs19.1 billion in public funding, is expected to draw Rs6.5 billion in private investment, double meat exports, create over 15,000 jobs and cut post-harvest losses by 8-12%. The Live Milk Programme, meanwhile, will set up modern dairy processing facilities worth Rs2.59 billion, which are projected to generate Rs40 billion in additional income.

The budget also included a cotton fee aimed at benefiting both farmers and the textile industry, while the government reported spending Rs79.78 billion on flood relief this year, providing direct financial assistance to over 2.1 million people.