Chief Minister of Khyber Pakhtunkhwa, Ali Amin Gandapur, announced on Tuesday that the provincial government will present a tax-free budget for FY 2025-26, ensuring that no new taxes will be imposed.
Emphasizing the province’s financial prudence, the chief minister said KP has not taken any new loans, though a hefty Rs 150 billion has been allocated for debt repayments as part of its commitment to responsible fiscal management.
Outlining the government’s development vision, Gandapur said the province has launched several mega projects, including the under-construction Peshawar-Dera Ismail Khan Motorway, aimed at enhancing regional connectivity.
To empower youth, the CM stated that the government will expand interest-free loan schemes to help young people become financially independent.
Additionally, the KP government has declared an “education emergency” across the province, with Gandapur highlighting educational reform as a top priority for his administration.
The upcoming provincial budget is expected to reflect the themes of fiscal discipline, public welfare, and long-term development.
Meanwhile, Federal Finance Minister Muhammad Aurangzeb will present the Rs 17.8 trillion federal budget in the National Assembly on Tuesday.
According to official budget documents, the GDP growth target for FY 2025-26 is set at 4.2%, while the current account deficit is projected at $2.1 billion or -0.5% of GDP.
The revised National Development Plan allocates over Rs 4,223 billion for various development projects nationwide. Of this, Rs 2,869 billion has been earmarked for the Public Sector Development Programme (PSDP), while Rs 682 billion will be allocated to federal ministries and divisions for their respective development initiatives.
