The provincial government under Chief Minister Sohail Afridi presented a Rs2.12 trillion development-focused and relief-oriented plan that aims to boost education, health, welfare, law and order, agriculture, transport and public services across Khyber Pakhtunkhwa. The KPK budget carries a Rs48 billion deficit, but the government has pledged not to borrow to cover the shortfall and will manage finances without new loans.
The package includes a seven percent increase in salaries and pensions and raises the minimum monthly wage to Rs45,000. Ad hoc relief allowances will be merged into basic pay, conveyance allowance is increased by 50 percent and special conveyance has been raised from Rs6,000 to Rs10,000, measures intended to provide immediate relief to government employees.
The Annual Development Programme has been fixed at Rs524 billion while current expenditure is estimated at Rs1.645 trillion. The KPK budget introduces no new taxes and continues tax relief measures for the merged tribal districts and the Provincially Administered Tribal Areas.
Education receives the largest share with an allocation of Rs468 billion, including Rs18.5 billion for free textbooks, Rs10.34 billion for governance reforms and Rs6.14 billion to support Parent-Teacher Councils. The government emphasised that improved learning opportunities for children and youth remain a central priority.
The health sector is allocated Rs334 billion, with the Sehat Card Plus programme set to receive Rs50 billion, Rs14.26 billion reserved for free medicines in public hospitals and Rs80 billion for Medical Teaching Institutions. The plan also includes recruitment of 2,819 doctors, dental surgeons and nurses to strengthen services across the province.
Security and policing have been allocated Rs191 billion, funds that have been used to enhance police capacity with modern weapons, drones and surveillance equipment. Local government is provided Rs90 billion, energy Rs42 billion and agriculture Rs29 billion, while Rs2 billion is earmarked for the Ehsaas Kisan Programme to support farmers.
Welfare measures are prominent with Rs15 billion for the Ehsaas Mustahiq Programme, Rs1 billion for the Ehsaas Maa Nai Zindagi Nai Umeed initiative, Rs1.1 billion for Zamung Kor complexes and Rs1 billion for journalists’ welfare. The government also announced Rs2.5 billion in subsidies for electric bikes and rickshaws and Rs7.5 billion for Bus Rapid Transit subsidies, including Rs4.9 billion for electric buses.
The Peshawar Revitalisation Plan includes projects worth Rs120 billion such as underpasses, underground electricity cabling and a new Ring Road, while a separate Rs36 billion allocation has been made for the Peshawar Rehabilitation Programme. The budget also sets aside Rs2 billion to support overseas job seekers and help families access employment opportunities abroad.
Reviewing achievements from the outgoing year, the provincial government reported 7,952 jobs created, 1,100 schools shifted to solar energy, stipends distributed to 10,000 students and Rs4.29 billion released for flood victims. The province expects Rs1.584 trillion in federal receipts, including Rs1.24 trillion in tax revenues, Rs149 billion under the war on terror allocation, Rs53 billion from the oil and gas surcharge, Rs24 billion from the windfall levy on oil and Rs38 billion in net hydel profit, while own-source revenues are projected at Rs182 billion.
Chief Minister Sohail Afridi said the KPK budget reflects a vision for a prosperous Khyber Pakhtunkhwa focused on ensuring development reaches every household, young person, farmer, labourer and business while maintaining fiscal responsibility and prioritising public welfare.
