Punjab’s $70 million Connected Punjab programme faces a series of regulatory and institutional requirements, including new artificial intelligence (AI) oversight, data protection and cybersecurity frameworks, before its planned digital services and cashless payment initiatives can become operational.
According to the World Bank’s first implementation status report, the programme, approved on June 30, 2026, has yet to become effective because financing and implementation agreements remain unsigned. Approval of key project documents for cashless transactions and the investment financing component is also pending.
The five-year programme, scheduled to close on June 30, 2031, aims to expand broadband coverage, improve digital government services and accelerate cashless payments across Punjab. The World Bank has rated progress towards its development objectives and overall implementation as “moderately satisfactory,” with an overall risk rating of moderate.
Under the digital governance component, the Punjab government must establish an AI Oversight Committee with citizen representation by June 2027. It is also required to prepare an AI programme manual and adopt an AI-for-service-delivery roadmap by December 2027. A data governance framework is due by the same deadline, while personal data protection and cybersecurity strategies are scheduled for approval and notification by June 2028.
The programme aims to introduce 28 AI-enabled services by June 2031 and increase the share of women using digitally enabled government-to-citizen services from 19% in March 2026 to 30% by the end of the programme.
Broadband expansion is another key objective. The initiative seeks to increase the population covered by fixed broadband from 7.8 million in April 2026 to 9.9 million by July 2031, identify 82 target urbanised areas and mobilise $50 million in private investment.
To support infrastructure development, the provincial government plans to reduce the average processing time for right-of-way (RoW) permits from 90 days to 21 days by June 2031. It also aims to enable 40 agencies to process permits through a digital platform. Procedures for reimbursing or waiving RoW and reinstatement fees must be established by January 31, 2027, while the provincial e-Biz portal is expected to process RoW applications and related complaints by December 2027.
The cashless payments component aims to bring 350,000 people onto digital payment systems by June 2031, including 105,000 women and 157,500 young people. Other targets include establishing a regulatory framework for point-of-sale (PoS) service providers, operationalising a digital invoice management system and expanding integrated digital PoS payment platforms to 35 business sectors.
The World Bank report identifies approval of the relevant PC-I, along with PoS device certification procedures and a strategic plan to promote cashless transactions, among the outstanding requirements.
The Punjab Information Technology Board has secured Provincial Development Working Party approval for PC-Is covering broadband connectivity and digital service delivery. However, the financing and implementation entity agreements remain unsigned, while approval of the PC-I for cashless transactions and the investment financing component is pending.
As of the reporting period, the programme had recorded no disbursements against its revised allocation of $69.25 million. Its implementation will depend on completing the outstanding agreements, securing approvals and putting the required regulatory and administrative frameworks in place.
