Punjab Budget 2026-27: Rs143bn mass transit expansion, 2,000 electric buses, rail revival projects announced

LAHORE, Jun 16 (APP): The Punjab government on Tuesday unveiled an ambitious transport development plan in the provincial budget 2026-27, announcing major investments in mass transit systems, electric buses and railway infrastructure aimed at improving public mobility, reducing pollution and strengthening regional connectivity.

Presenting the budget in the Punjab Assembly, Punjab Finance Minister Mujtaba Shuja-ur-Rehman said that under the vision of Chief Minister Maryam Nawaz Sharif, the government had launched Mass Transit Systems in Faisalabad and Gujranwala at a combined cost of Rs143 billion. He said an allocation of Rs26.6 billion had been earmarked in the next fiscal year to continue work on these projects.

The minister informed the House that a project worth Rs94 billion for the procurement of 1,100 environment-friendly electric buses was underway in nine divisions of Punjab to promote affordable, low-emission public transport. More than 400 electric buses are already operational, while another 700 buses will be added to the fleet in the near future.

He said a separate project costing Rs18.9 billion had also been initiated for the establishment of urban bus depots to support the electric bus network.

Announcing further expansion of green transport, Mujtaba said the government would launch a Rs168 billion programme for the provision of 2,000 additional electric buses during the upcoming fiscal year. The initiative will extend electric bus services to all tehsil headquarters across Punjab.

He added that Rs164 billion would be spent on establishing bus depots at divisional and tehsil levels through 21 development projects to strengthen transport infrastructure across the province.

The finance minister said the Punjab Masstransit Authority and Punjab Transport Company had provided a subsidy of Rs37.55 billion during fiscal year 2025-26 to ensure affordable and standardised transport services, including Metro Bus, Feeder Bus, Orange Line Metro Train, electric buses and Speedo Bus operations.

He further said the government was preparing a comprehensive roadmap for the promotion of high-speed and modern rail connectivity across Punjab.

For the revival of regional railway infrastructure, the minister announced a proposed allocation of Rs10 billion for a project aimed at restoring 1,515 kilometres of eight regional railway tracks, enhancing connectivity and facilitating economic activity across the province.