By: Ghulam Hussain Ghazi
The new fiscal budget of the Khyber Pakhtunkhwa government for the FY 2025-26 is not merely an annual financial statement; rather, it embodies an extraordinary, forward-looking and realistic strategic vision. It has been presented under some of the most difficult economic, political and geographical circumstance, at a time when other provinces, particularly Punjab and Sindh, despite their abundant financial resources, are barely maintaining fiscal balance through federal assistance, loans and subsidies. Yet, KP has demonstrated both wisdom and resolve by tabling a balanced and development-oriented budget. It stands as a shining example for others and reflects the farsightedness of the provincial cabinet under the dynamic leadership of Chief Minister Ali Amin Gandapur.
In an era when inflation has broken into every household like an unchained beast, when currency devaluation has made even basic food unaffordable for the poor and when the salaried class prays instead of calculating their monthly expenses, a province that quietly presents a budget, without flashy advertisements or hollow slogans, without seeking new loans, offers not just a budget but a bold statement of dignity.
The new KP budget articulates a candid financial narrative: when intentions are sincere, priorities are clear and feet are firmly on the ground, any government, even with limited resources, can ameliorate lot of the poor and deliver meaningful progress. The total budget stands at Rs. 2.119 trillion, with over Rs. 1.95 trillion allocated for current and development expenditures, and a surplus target of over Rs. 150 billion, indicating a budget, free from any deficit. No new taxes have been imposed, and existing burdens have been eased.
One of the most commendable aspects of this budget is its complete avoidance of reckless borrowing. Unlike past governments that obtained extraordinary loans, launched schemes for political gains and passed the debt to future generations, this provincial government has made it clear: loans will only be taken when there is a guaranteed plan for repayment. Additionally, Rs. 49 billion have been earmarked to repay existing loans, demonstrating not just fiscal prudence but intergenerational responsibility.
In contrast, if we take a cursory look at the new budgets of the two big provinces viz Punjab and Sindh, the Punjab government’s budget is Rs 5.3 trillion and that of Sindh is Rs 3.45 trillion, with a significant burden of internal and external debt. Meanwhile, the provincial GDP (GSDP) growth rate is considerably lower compared to Khyber Pakhtunkhwa. There is no mention or concern about getting out of debt as well.
The KP development agenda prioritizes sectors that directly impact the lives of ordinary citizens. Education receives the largest share, with Rs. 363 billion allocated to improve school infrastructure, establish new institutions and enhance the quality of education. Another Rs. 39 billion are set aside for higher education, enabling youth to meet modern demands. The health sector will receive Rs. 276 billion, of which Rs. 35 billion is dedicated to the Sehat Card Plus scheme, ensuring that even the poorest citizens can receive VIP-level treatment for life-threatening diseases like cardiac, liver and kidney ailments.
For the youth, the good news is that Rs. 2 billion have been allocated for self-employment schemes, double the amount from last year. This initiative aims to empower educated but jobless youth by equipping them with skills to start their own businesses. The vision is to transform job seekers into job providers, igniting a ripple effect of employment.
Public safety and infrastructure have not been overlooked. The government has set aside Rs. 158 billion for policing, law enforcement and security, Rs. 123 billion for communications and works and Rs. 17 billion for agriculture, to keep the economic wheels spinning in nook and corner of the province. A further Rs. 11.6 billion is allocated for sports and youth activities, recognizing that a healthy society depends not just on food but on active, engaged youth.
About tourism, the most beautiful face of KP and a potential goldmine of foreign exchange. Encouragingly, this year’s budget gives serious attention to it, with Rs. 6.3 billion earmarked for new sites identification, facility enhancement and promotion of the local economy. This includes developing tourism zones in Galiyat, Swat, Dir, Chitral and the merged districts, as well as infrastructure upgrades, initiatives that promise both employment for locals and attracts domestic and international tourists.
The merged districts have not been neglected either. Under the Accelerated Implementation Programme (AIP), Rs. 92 billion have been allocated, along with an additional Rs. 40 billion through the Annual Development Programme (ADP). These funds will support essential infrastructure, education, healthcare and job creation, ensuring balanced development across the province.
Further measures include waiving registration and token fees on electric vehicles, tax relief in FATA and PATA and exemption from professional tax for low-income skilled workers. These steps indicate a government that is not just crunching numbers but making people-centric decisions.
However, one area that demands attention is the rise in salaries and pensions for government employees and retirees. The provincial increase proposed is even lower than that of the federal government, prompting rightful concern from employee bodies like AGEGA. The government must address this, as this very workforce carries the weight of governance on its shoulders. Similarly the federal government is also requested to ensure regular payment of hydropower profits, NFC Award funds, tobacco cess, and settled revenues for the merged districts to the province. This will help send a positive message to the public and foster better relations.
In essence, the KP budget is a silent revolution, free from loud slogans, deceptive banners or exaggerated ads. It is not just a collection of figures but a manifesto of dignity, transparency, and public welfare. A message desperately needed in today’s Pakistan, both as a mirror and a guiding light for other administrations. Each page of this budget bears witness to the fact that KP’s leadership understands that governance in a region beset with resource disparities, economic blockades and constant security threats, requires not just fiscal acumen but vision, courage, and wisdom. This is what transforms this budget from a mere financial document into a people’s charter, marking the beginning of a proud journey toward freedom from poverty, self-reliance, and a life of dignity.
