Punjab Approves Establishment of Air Punjab Private Limited Company – Key Cabinet Decisions 2025

In a landmark move aimed at expanding Punjab’s connectivity, industrial growth, and administrative reforms, the Punjab Cabinet, chaired by Chief Minister Maryam Nawaz Sharif, has officially approved the establishment of Air Punjab Private Limited Company.
This development marks another major milestone in Punjab’s governance and modernization strategy. Alongside the Air Punjab launch, the cabinet took several important decisions to strengthen sectors such as agriculture, transport, tourism, housing, and education.
Let’s explore all major highlights of the 30th Punjab Cabinet Meeting 2025.
Air Punjab Private Limited Company – A Game-Changer for Provincial Aviation
The most notable decision from the meeting was the approval for establishing Air Punjab Private Ltd., envisioned to transform regional aviation within the province.
According to official sources, Air Punjab will initially operate short-distance flights connecting major cities like Lahore, Multan, Bahawalpur, Faisalabad, and Rawalpindi, before expanding nationwide.
Objectives of Air Punjab:
- Provide affordable and accessible air travel within Punjab.
- Support tourism, business, and emergency transport services.
- Reduce dependency on federal airlines for provincial routes.
- Create new employment opportunities in aviation and services.
Chief Minister Maryam Nawaz emphasized that Air Punjab must become operational at the earliest, ensuring high service standards and efficient management.
“Air Punjab is not just an airline; it’s a symbol of provincial progress and connectivity,” she said during the meeting.
Agriculture Reforms: Punjab High-Tech Farm Mechanization Finance Program
A major focus of the cabinet meeting was on agriculture modernization. The High-Tech Farm Mechanization Finance Program received special attention from the Chief Minister.
- Over 10,000 applications have already been received for subsidized machinery.
- Around 1,500 farmers have applied through the Bank of Punjab.
- The government will provide super seeders, harvesters, and other modern machines at 60 percent subsidy.
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Benefits for Farmers
This initiative aims to bridge the gap between traditional and modern agriculture by equipping farmers with technology-driven tools.
Maryam Nawaz noted that Pakistan’s agriculture had suffered due to “decades of negligence in mechanization,” and this program would revolutionize productivity in the coming years.
Kisan Card Phase II – Financial Empowerment for Farmers
The cabinet reviewed progress on Kisan Card Phase II, confirming that:
- Rs 100 billion has been distributed among farmers under the program.
- A record recovery of Rs 70 billion was achieved from the previous phase.
- Farmers who repay loans under the Kisan Card scheme get fresh funds within 24 hours.
This rapid financial turnaround mechanism ensures that small farmers remain financially stable, supporting long-term agricultural sustainability.
Lahore-Rawalpindi High-Speed Rail MoU Approved
Punjab’s vision for a modern transport network continues with the approval of an MoU for the Lahore-Rawalpindi High-Speed Rail Project.
The new railway system will connect the twin cities in record time, drastically reducing travel duration while promoting eco-friendly, high-capacity public transport.
Rejection of Electric Bus Fare Increase
In a people-friendly decision, the cabinet rejected a proposal to increase electric-bus fares in Multan, Rawalpindi, and Lahore.
Maryam Nawaz emphasized that public transport must remain affordable, especially for daily commuters, students, and workers.
The cabinet instead approved subsidies for electric depots in major cities to ensure uninterrupted, cost-effective operations of the Punjab Electric Bus Network.
Punjab Green Tractor Phase II – Subsidy for Farmers
Continuing support for the agriculture sector, the government approved a new subsidy package for the Chief Minister Green Tractor Scheme Phase II.
Under this initiative, farmers will receive significant discounts on tractor purchases, empowering them to increase production efficiency and lower fuel costs.
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Punjab Cabinet Also Approves University of Hafizabad
Education reforms remained a key agenda item. The cabinet officially approved the establishment of the University of Hafizabad, aimed at providing higher education access to students in central Punjab.
The new university will focus on disciplines like agriculture, engineering, health sciences, and IT, reducing the burden on major institutions in Lahore and Faisalabad.
Infrastructure and Transport Projects Approved
Several infrastructure projects received green lights in the meeting:
- Gujranwala Mass Transit Project – exempted from CDWP clearance to speed up implementation.
- Smart Safe Cities Phase I – funding approved for modern surveillance and smart-policing systems.
- Roads Rehabilitation Project under Punjab Khushal Program – for improving rural road connectivity.
- Barki Road Development and Abdullah Gul Interchange Chowk Projects – approved to ease Lahore’s traffic congestion.
These initiatives reflect the government’s plan to modernize Punjab’s transport and infrastructure ecosystem.
Data Darbar Project – Tax Exemption for Hydraulic Canopy
The cabinet also approved a request to the federal government for tax exemption on the hydraulic canopy project at Data Darbar Lahore, ensuring a smoother experience for pilgrims and visitors.
Green Pakistan Program and Tourism Development
Under Punjab’s eco-tourism vision, the cabinet approved funds for the Green Pakistan Program and Punjab Tourism and Heritage Authority.
The government also green-lit a green corridor along Lahore’s railway track (Shahdara to Raiwind), promoting urban greenery and reducing carbon emissions.
Additionally, the Film City Project was included in the Annual Development Plan (ADP), showing Punjab’s commitment to nurturing its creative industry.
Healthcare Expansion and Cardiac Facilities
Punjab’s healthcare network is set for a major boost. The cabinet approved:
- Recruitment of cardiologists, nurses, and medical technologists for new cath labs in district hospitals.
- Construction of three general hospitals in Attock, Layyah, and Bahawalnagar.
- Formation of Boards of Management for Gujranwala Medical College and Sahiwal Medical College.
These projects aim to provide advanced medical facilities closer to rural populations, reducing the need to travel to major cities for treatment.
Punjab Protection of Ownership of Immovable Property Ordinance 2025
The cabinet approved this new law under the vision “One who possesses it owns it.”
The ordinance aims to protect rightful owners from illegal possession and fraudulent property transfers.
This reform strengthens legal ownership rights and ensures transparent land documentation throughout Punjab.
Administrative Approvals and Appointments
Key appointments approved by the cabinet include:
- CEO Punjab Land Development Company Ltd
- CEO Punjab Mineral Company Ltd
- CEO Air Punjab Private Ltd
- Chairperson Drug Courts Punjab
- Nomination of Judges for Anti-Terrorism Courts in Bahawalpur, Sargodha, and D.G. Khan
These appointments demonstrate the administration’s focus on institutional strengthening and accountability.
New Laws and Policy Amendments
Several policy updates and new laws were approved:
- Punjab Water and Sanitation Authority Act 2024
- Punjab Private Housing Schemes Rules 2022 (Amendments)
- Punjab Autism School and Resource Centre Act 2025
- Revised Advertisement Policy 2025
- Registration Act 1908 (Amendments)
Each of these steps contributes toward improving urban governance, inclusivity, and service delivery across the province.
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Economic and Social Reforms: Cashless Strategy and Digital Punjab
In line with the Prime Minister’s Cashless Strategy, the cabinet approved QR codes for retailers, promoting transparent digital transactions.
This initiative is part of the Digital Punjab Vision, aimed at reducing corruption, encouraging financial inclusion, and modernizing the economy.
Punjab Cabinet 2025 – Key Takeaways
| Sector | Major Decision | Expected Impact |
|---|---|---|
| Aviation | Establishment of Air Punjab Private Ltd | Boosts connectivity, tourism, jobs |
| Agriculture | High-Tech Farm Mechanization & Kisan Card Phase II | Increases productivity, financial access |
| Transport | High-Speed Rail & Mass Transit Projects | Improves mobility and economy |
| Education | University of Hafizabad Approved | Expands higher education |
| Healthcare | New Hospitals & Cardiac Labs | Strengthens medical services |
| Environment | Green Pakistan Program | Promotes sustainability |
| Tourism | Film City & Tourism Authority | Supports culture & economy |
Trending FAQs About Punjab Air Punjab Private Ltd Company 2025
1. What is Air Punjab Private Limited Company?
Air Punjab is a new provincial airline approved by the Punjab Cabinet 2025 to improve regional air travel and enhance business and tourism connectivity across Punjab.
2. Who will operate Air Punjab Pvt Ltd?
The company will be overseen by the Punjab Government, with its own Chief Executive Officer already appointed. Operations are expected to start soon.
3. What are the benefits of the High-Tech Farm Mechanization Finance Program?
It provides farmers up to 60% subsidy on advanced agricultural equipment like tractors and seeders to promote modern farming practices.
4. What new infrastructure projects were approved by the cabinet?
The cabinet approved the Lahore-Rawalpindi High-Speed Rail, Gujranwala Mass Transit System, Safe Cities Project, and Road Rehabilitation under Punjab Khushal Program.
5. When will the University of Hafizabad be established?
The approval has been granted; development work is expected to begin in 2026 with focus on science, technology, and agriculture education.






