South Punjab gets major share in FY27 development funds
The Punjab government has proposed major development allocations for South Punjab in the fiscal year 2026-27 budget, with large sums earmarked for irrigation, flood protection, roads, health, agriculture, livestock, urban infrastructure, social welfare and education projects across Multan, Bahawalpur, Rahim Yar Khan, Dera Ghazi Khan and Muzaffargarh.
According to budget documents, Rs314 billion has been allocated for irrigation and water reservoir development projects, making water security and flood protection one of the biggest development priorities for the region.
South Punjab development push
Major proposed allocations in Punjab Budget 2026-27
More than Rs95 billion has been earmarked for the Jalalpur Irrigation Project, while the government has decided to continue the Noraja Bhatta Flood Protection Dam and Pirwala Flood Protection Dam projects.
The budget also proposes continuing work on 110 water projects in the Pothohar region and more than 500 water reservoirs and related schemes under the Small Dams Programme Phase-II.
An allocation of Rs12 billion has been proposed for improvement of the BRBD canal system, while funds have also been set aside for the upgrading of Ravi Siphon and link canal projects.
The government has allocated Rs56.51 billion for the Flood Resilience Programme, aimed at reducing flood risks and protecting water resources.
In Bahawalpur division, several flood protection projects have been included in the budget. Rs800 million will be spent on strengthening the Ahmedpur flood embankment, Rs980 million on protective works around Panjnad Headworks and Rs770 million on strengthening the Manchan flood embankment in Rahim Yar Khan.
Flood protection and water security
Major projects proposed to reduce flood risks and protect water resources
Urban infrastructure and roads
The budget also includes major allocations for urban development and road infrastructure in South Punjab.
Under the Integrated Urban Development and Infrastructure Improvement Project, special funds have been released for urban infrastructure improvement and development schemes.
The government has allocated Rs20 billion for strategic road infrastructure, while billions of rupees have been proposed under the Chief Minister's Initiative for Road Infrastructure.
Big-ticket South Punjab allocations
Selected allocations proposed for water, welfare, roads and flood protection
A total of Rs87 billion has been allocated for housing, development and social welfare projects, while more than Rs40 billion has been earmarked for rural development and welfare programmes.
In Cholistan, several water supply and road projects have been proposed. These include rehabilitation of the pipeline from 108/DB to Bajnot, purchase of water tankers to deal with drought, road construction and rehabilitation, new drinking water supply schemes and digitisation of Cholistan Development Authority records.
Health projects in Bahawalpur
The Punjab government has proposed major health sector projects for Bahawalpur in the next fiscal year.
A burn unit at Bahawal Victoria Hospital will be completed at a cost of Rs4.30 billion, while a children's hospital project will be launched at a cost of Rs23.37 billion.
Bahawalpur health projects
Major proposed health schemes for the next fiscal year
A thalassemia centre is also expected to be completed at a cost of Rs25.56 million.
The budget further includes Rs561 million for the purchase of modern lithotripsy machines for Bahawal Victoria Hospital, Sheikh Zayed Hospital and Lahore General Hospital.
Rahim Yar Khan projects
Several development schemes have been proposed for Rahim Yar Khan, particularly in education, sports and infrastructure.
Rs45.4 million has been released for completion of the chemical block at Khawaja Farid University, Rahim Yar Khan. The total cost of the project is more than Rs770 million, of which Rs72.53 million has already been spent.
Rahim Yar Khan development schemes
Education and sports projects included in the proposed allocations
| Project | Allocation / cost |
|---|---|
| Khawaja Farid University chemical block | Rs45.4m released |
| Total chemical block cost | Rs770m+ |
| Ahmedpur Lama mini sports complex | Rs29m released |
| Total sports complex cost | Rs69.7m |
| Khanpur prototype gymnasium rehabilitation | Rs29m |
| Kacha Rahim Yar Khan development | Rs440m |
The government has also released Rs29 million for construction of a mini sports complex in Ahmedpur Lama, Sadiqabad. The project is estimated to cost Rs69.7 million.
Another Rs29 million has been allocated for rehabilitation of the prototype gymnasium in Khanpur to improve sports infrastructure.
For Kacha areas of Rahim Yar Khan, Rs440 million has been proposed for development projects.
Bahawalpur division and Safe Cities
The budget includes major allocations for Bahawalpur division under security and infrastructure development.
The Smart Safe Cities Programme for Bahawalpur, Bahawalnagar and Rahim Yar Khan will be completed at a cost of Rs10.88 billion.
The new courts block of the Lahore High Court Bahawalpur Bench will be completed at a cost of Rs730 million, while funds have also been proposed for residences of judicial officers in Ahmedpur Sharqia.
The government has also proposed Rs500 million for reconstruction and rehabilitation of Markaz Subhan mosque, which was damaged in Indian aggression in Bahawalpur.
Agriculture and cotton belt
A special programme has been launched to increase cotton production in Bahawalpur division, including Bahawalpur, Bahawalnagar and Rahim Yar Khan.
The Cotton Valley Programme will cost Rs1.764 billion, with more than Rs355.8 million allocated for 2026-27.
The government also plans to modernise agricultural extension services across Punjab. Farmers in Bahawalpur division will benefit from digital guidance, modern agricultural consultancy and field services under a project costing Rs1.917 billion.
Mobile soil laboratories will be established in Bahawalpur, Bahawalnagar and Rahim Yar Khan to provide farmers on-site guidance on soil fertility and fertiliser use. The project will cost Rs736.4 million, with Rs238.2 million allocated for the next fiscal year.
Bahawalpur cotton belt initiatives
Selected agriculture projects for Bahawalpur, Bahawalnagar and Rahim Yar Khan
A date promotion programme will also be launched in Bahawalpur division, focusing on modern varieties, processing and value addition. The project will cost Rs320 million, with Rs100 million allocated for 2026-27.
The agriculture sector in Bahawalpur division has also been included in a World Bank-supported programme to reduce environmental pollution through modern machinery and climate-friendly farming practices. The project will cost more than Rs5.55 billion.
Another project costing Rs419.6 million will provide farmers with digital information on modern agricultural technology, weather, crop diseases and markets.
Livestock and rural women
The Punjab government has allocated Rs2 billion for livestock asset transfer to rural women in South Punjab.
Under the livestock project, 4,385 rural women will receive support aimed at increasing their economic independence.
The programme is designed to provide employment and income opportunities to women in rural areas and has been included as part of a special development package for women's economic empowerment in 2026-27.
Social welfare programmes
The budget proposes major social welfare allocations for South Punjab.
The Dhee Rani Programme has set a target of supporting 5,000 deserving beneficiaries, while funds have also been allocated under social security for the programme.
The government has planned facilities for more than 18,000 people under old age homes projects, with more than Rs40 billion allocated for care and welfare of the elderly.
Rs13.75 billion has been allocated for the Ramadan Nigehban Package, under which more than 3.4 million deserving people are expected to benefit.
Social welfare focus
Programmes proposed for vulnerable groups in South Punjab
Funds have also been proposed for the Chief Minister Minority Card and development projects under the Chief Minister Minority Development Programme.
The South Punjab Poverty Alleviation Project has been allocated Rs6.98 billion, while 7,500 people will be trained under the Skills Training Programme.
Rs10 billion has been proposed for Punjab Sahulat Bazaar Authority projects to provide affordable goods to citizens through the Sahulat On The Go initiative.
Dera Ghazi Khan projects
The budget includes several allocations for Dera Ghazi Khan division.
Rs70 million has been allocated for the building of Ghazi University, while another Rs70 million has been proposed for Women University, Dera Ghazi Khan.
Mir Chakar Khan Rind University of Technology has been allocated Rs50 million.
Dera Ghazi Khan key allocations
Selected education, transport and security infrastructure schemes
The government has proposed Rs44.3 million for the construction of a Special Education Middle School building in Taunsa.
Rs250 million has been earmarked for a public transport bus depot and related infrastructure in Dera Ghazi Khan.
Several inter-provincial joint check posts have also been included in the budget. Rs50 million has been allocated for Ghazi Ghat Inter-Provincial Joint Check Post, Rs20 million for Bawata Check Post, Rs20 million for Tarman Joint Check Post in Taunsa and Rs20 million for Sakhi Sarwar Inter-Provincial Joint Check Post.
Muzaffargarh sports project
In Muzaffargarh, Rs38.6 million has been allocated for construction of shops at Faisal Stadium.
The project, located on DG Khan Road, is in its final stages, with 60% of work completed. Rs15.14 million has been released for sustainable model shops at the stadium, and the remaining amount will be spent during the current financial year.
The project is expected to be completed by June 2027.
Officials said the South Punjab allocations reflect the government's focus on flood protection, water management, rural development, agricultural growth, women empowerment and improved public services in historically underserved districts.