The best 100 performing schools in each of the 36 districts of Punjab will receive a cash incentive of Rs. 100 million, according to the Punjab government.

Every chosen school that exhibits exceptional performance will be awarded Rs. 1 million.

The award will also be given to government-outsourced schools run by the Punjab Education Foundation (PEF) and Punjab Education Initiative Management Authority (PEIMA).

Schools will be evaluated by a third party based on their academic performance, classroom atmosphere, infrastructure, and accessibility to basic amenities.

Principals of schools may utilize the granted monies however they see fit to enhance the well-being of their schools and pupils.

The third stage of the school outsourcing initiative has been put on hold for the time being. To give Phase 2 schools time to stabilize, the outsourcing process has been put on hold for two months, according to Punjab Education Minister Rana Sikandar Hayat.

The third phase, which was initially planned to start on October 5, 2025, will only move forward after the previously outsourced schools are operating efficiently, he continued.

38,000 Schools in Punjab Face Shortage of Funds

Regular instructional activities have been disrupted in over 38,000 schools throughout Punjab due to a serious lack of finance, according to official sources.

Even though the new fiscal year began three months ago, the School Education Department has yet to release the non-salary budget, which is crucial for covering the operational needs of schools.

This non-salary budget, according to officials, pays for utilities, maintenance, and basic facilities. Although schools are expected to receive one installment of these monies per quarter, the year's first payment has yet to be made

Schools in Lahore alone typically receive Rs160 million per quarter, but because of the delay, many institutions are finding it difficult to make ends meet and pay their expenditures.

Basic instructional activities and maintenance projects around the province may be further impacted if funds are not given quickly, according to an education official.