Punjab budget: $428.54m foreign-funded uplift projects included

LAHORE: Foreign-funded development projects of USD 428.54 million have been included in Punjab budget for FY 2025-26.

These projects focused on improving water supply & sanitation, urban development, environment, irrigation, agriculture, physical infrastructure, health, education, skills development and IT & governance.

As per budget document, foreign engagement in Punjab’s development financing primarily takes two forms: project-based loans and grants (Foreign Project Assistance) and programme-based loans (budgetary support). Loans obtained from multilateral donor agencies through the Federal government for specific foreign-assisted development projects are termed as Foreign Project Assistance. Programme loans, on the other hand, provide direct budgetary support, linked with indicators and results, named Disbursement Linked Indicators and Result Based Lending.

The Punjab government, in line with its policy parameters on foreign borrowing, is guided by a preference for concessional financing and longer maturities, ensuring long-term fiscal sustainability.

World Bank-funded projects are: Punjab Clean Air Programme, Getting Results: Action, Delivery of Quality Education Services; Punjab Rural Sustainable Water Supply & Sanitation Project (PRSWSSP); Punjab Resilient and Inclusive Agriculture Transformation Project (PRIAT); Punjab Urban Land Systems Enhancement (PULSE) Project; Punjab Human Capital Investment Project; Punjab Resource Improvement and Digital Effectiveness; Punjab Family Planning Programme (PFPP); Punjab Affordable Housing Programme (PAHP); National Health Support Programme; Punjab Tourism for Economic Growth Project (PTEGP); Punjab Cities Programme and Punjab Green Development Programme (PGDP).

The ADB-funded projects included: Construction of Jalalpur Irrigation Project; Punjab Intermediate Cities Improvement Investment Programme; Project Readiness Financing (PRF) for Punjab Water Resources Management; Project Readiness Financing for Punjab Urban Development Projects; Improving Workforce Readiness in Punjab Project; Developing Resilient Environment and Advancing Municipal Services (DREAMS) in Punjab; Responsive Ready and Resilient STEM Secondary Education in Punjab.

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