The provincial government presented a Rs2.12 trillion budget aimed at boosting development and delivering immediate relief across Khyber Pakhtunkhwa. The plan sets out a relief-oriented agenda that prioritises education, health, welfare, law and order, agriculture, transport and job creation while committing not to introduce new taxes.
The budget carries a projected deficit of Rs48 billion, but the government pledged it will not borrow to cover that shortfall and will meet financial needs without fresh loans. Current expenditure is estimated at Rs1.645 trillion while the Annual Development Programme is fixed at Rs524 billion.
Salaries and pensions receive a 7 percent increase and the minimum monthly wage has been raised to Rs45,000. Ad hoc relief allowances will be merged into basic pay, conveyance allowance is set to rise by 50 percent and special conveyance allowance will increase from Rs6,000 to Rs10,000, measures designed to provide immediate relief to government employees and pensioners under the KP budget.
Education gets the largest share with Rs468 billion allocated, including Rs18.5 billion for free textbooks, Rs10.34 billion for governance reforms and Rs6.14 billion for Parent-Teacher Councils. Officials emphasised that investing in education remains central to the province’s long-term prosperity and the KP budget underlines that priority.
The health sector is allocated Rs334 billion, with the Sehat Card Plus programme receiving Rs50 billion and Rs14.26 billion set aside for free medicines in public hospitals. Medical Teaching Institutions will get Rs80 billion, and the government has plans to recruit 2,819 doctors, dental surgeons and nurses to strengthen services.
Security and policing are funded with Rs191 billion, reflecting continued emphasis on law and order. The government highlighted investments in modern weapons, drones and surveillance equipment to boost police capacity under the KP budget framework.
Local government will receive Rs90 billion, energy Rs42 billion and agriculture Rs29 billion, while farmers will benefit from a Rs2 billion Ehsaas Kisan Programme. Welfare measures include Rs15 billion for the Ehsaas Mustahiq Programme, Rs1 billion for an “Ehsaas Maa, Nai Zindagi, Nai Umeed” initiative, Rs1.1 billion for Zamung Kor complexes and Rs1 billion for journalists’ welfare.
Transport and urban projects are highlighted in Peshawar, where a Revitalisation Plan carries Rs120 billion for underpasses, underground electricity cabling and a new Ring Road, and a separate Rs36 billion Peshawar Rehabilitation Programme has been approved. The budget also provides 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 province expects Rs1.584 trillion in transfers and receipts from the federal government, including Rs1.24 trillion in tax revenue, Rs149 billion under the war on terror allocation, Rs53 billion from 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. An additional Rs2 billion has been set aside to support overseas job seekers.
Reviewing achievements from the outgoing year, the provincial leadership said the government created 7,952 jobs, converted 1,100 schools to solar power, distributed stipends to 10,000 students and released Rs4.29 billion for flood victims, underscoring the administration’s focus on welfare and service delivery as reflected in the KP budget.
