The Khyber Pakhtunkhwa (KP) government presented a historic Rs2,119 billion surplus budget for fiscal year 2025-26, with Finance Minister Aftab Alam Khan announcing major relief measures including a 10% salary hike for government employees, 7% pension increase, and raising the minimum wage from Rs36,000 to Rs40,000. The budget estimates Rs1,962 billion in expenditures against Rs2,119 billion revenue, leaving a Rs157 billion surplus – surpassing previous years’ combined surpluses.
Key allocations include Rs547 billion for the Annual Development Program (ADP), Rs1,415 billion for salaries/pensions (Rs1,255bn for settled districts, Rs160bn for tribal areas), and Rs7 billion for social sectors like health (Rs2.86bn), minerals (Rs700m), and tourism (Rs550m). The Sehat Card Plus program, now covering 100% of KP’s population, has benefited 4.4 million people, while Rs4.9 billion was earmarked for higher education reforms.
The budget introduced significant tax reliefs: slashing property stamp duty from 2% to 1%, reducing hotel bed tax to 7%, exempting small property transfers, abolishing professional tax for Rs36,000 earners, and waiving EV registration fees. Minister Khan criticized the federal government for Rs267 billion NFC shortfall and Rs129 billion unpaid dues (Rs71bn electricity profits, Rs58bn oil/gas), while revealing KP cleared Rs49 billion loans last year.
Opposition Leader Abbadullah lambasted the PTI government for excluding opposition lawmakers from development funds, declaring: “Not a single rupee has been given to us.” He challenged corruption allegations against himself and accused the ruling party of internal discord, calling the budget a “vote of no-confidence” against their own leadership. The minister countered by highlighting 74% growth in non-tax revenue and strict fiscal controls requiring Finance Department approval for new loans. With Rs177 billion expected in foreign aid, the budget aims to balance welfare spending with fiscal discipline amid ongoing federal-provincial financial disputes.
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