Amid raucous protests from the opposition benches, the Khyber-Pakhtunkhwa (K-P) government on Friday presented a Rs2.119 trillion surplus budget for the fiscal year 2025–26, calling it a “historic step” toward economic recovery after inheriting what it described as a financially devastated province.
Finance Minister and Law Minister Aftab Alam, delivering the budget in a session chaired by Speaker Babar Saleem, said the province was on the brink of collapse when Chief Minister Ali Amin Gandapur assumed office. He cited empty coffers, stalled development, discontinued health insurance, and insufficient wheat reserves as legacies of the “unconstitutional caretaker setup.”
Key Highlights:
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10% salary increase and 7% pension hike for government employees
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Minimum wage raised from Rs36,000 to Rs40,000 per month
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15–20% increase in disparity allowance for non-executive employees
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Police salaries proposed to be aligned with Punjab Police
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Shuhada package for police martyrs increased from Rs10 million to Rs11 million
Aftab Alam claimed the province not only met but exceeded its surplus targets, with enough funds now to cover three months of salary payments — a major turnaround from the 15-day reserves inherited by the current government.
The total expenditures for 2025–26 are projected at Rs1.962 trillion, with revenues at Rs2.119 trillion, resulting in a Rs157 billion surplus — the largest in K-P’s history, the minister noted.
Development and Investment:
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Annual Development Programme set at Rs547 billion
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Rs150 billion invested in provincial development fund this year
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Rs49 billion in loan repayments, including Rs18 billion in interest
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16,000 teachers to be recruited; 3.4 million textbooks distributed; over 518,000 scholarships awarded
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Rs4.6 billion granted to public universities; Rs4.9 billion for higher education development
Tax Relief Measures:
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Stamp duty and property transfer tax reduced from 2% to 1%
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Tax exemption for properties up to 4.9 marlas
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Hotel bed tax reduced from 10% to 7%
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Professional tax waived for individuals earning up to Rs36,000/month
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Registration and token tax on electric vehicles abolished
The finance minister also revealed a shortfall of Rs267 billion under the National Finance Commission (NFC) award and outstanding federal dues, including Rs71 billion in net hydel profits and Rs58 billion in oil and gas royalties. Foreign assistance grants are expected to total Rs177 billion.
The budget session saw theatrical opposition protests, with chants of “Ali Baba Chalees Chor” and placards accusing the government of corruption. PML-N MPA Sobia Shahid even blew a bugle in the assembly. However, normalcy resumed after Speaker Babar Saleem intervened.
A resolution expressing solidarity with Iran in the wake of recent Israeli aggression was also passed.
In his concluding remarks, the finance minister emphasized the continued priority to strengthen K-P’s police force — a region deeply affected by decades of militancy — with increased allocation for arms, gear, and surveillance systems. He added that restoring the Sehat Card scheme is under active consideration, depending on available fiscal space.
