KP Government
The PTI-led government of Khyber Pakhtunkhwa (KP) has presented its provincial budget for the fiscal year 2025-26, with a total outlay of Rs2,119 billion. The budget was unveiled by KP Finance Minister Aftab Alam, who detailed the province’s revenue estimates, expenditures, and key sectoral allocations aimed at driving development and public welfare in the region.
According to Finance Minister Alam, the total revenue for the province is estimated at Rs2,119 billion, while the projected expenditure stands at Rs1,962 billion. This fiscal plan reflects a surplus of Rs157 billion, signaling a cautiously optimistic economic outlook for KP in the upcoming year. The province is expected to receive Rs1,147 billion through federal transfers, forming a significant portion of its revenue.
The Annual Development Programme (ADP) has been allocated Rs547 billion, with Rs40 billion specifically earmarked for the merged districts, highlighting the government’s focus on integrating and developing these newly merged regions.
Among various sectors, education has been given a substantial share with Rs363 billion allocated, underlining the government’s commitment to improving educational infrastructure, access, and quality.
Healthcare is another priority, with Rs276 billion allocated to the sector. This funding aims to enhance medical services, expand health facilities, and improve overall public health outcomes in KP. To address security concerns and strengthen law enforcement, the government has set aside Rs158 billion for law-and-order initiatives.
Local government and rural development programs will receive Rs55 billion, supporting grassroots governance and community-based projects. Additionally, Rs32 billion is proposed for public health engineering, and Rs46 billion for irrigation, reflecting the focus on essential services and agricultural sustainability.
The livestock and dairy sector, a key part of KP’s rural economy, has been allocated Rs17 billion to encourage growth and modernization.
Acknowledging the rising inflation and cost of living, the KP government has announced a 10% increase in salaries for government employees and a 7% increase in pensions. In a significant move to improve the livelihoods of workers, Finance Minister Aftab Alam Afridi also declared an increase in the minimum monthly wage to Rs40,000.
This comprehensive budget aims to balance developmental needs with fiscal prudence while addressing socio-economic challenges and laying the foundation for sustainable growth in Khyber Pakhtunkhwa over the next fiscal year.
