The KP Budget 2025-26 will be presented on Friday, June 13. The Khyber Pakhtunkhwa government has finalised an outlay of over Rs2.18 trillion for the upcoming fiscal year. Law Minister Aftab Alam has once again been given additional responsibility. He will present the finance bill in the provincial assembly.
Officials from the Finance Department shared fresh details about the financial plan. The new KP Budget 2025-26 is tailored to match the province’s shifting economic needs. It includes major funds for government salaries, pensions, and new development projects.
The estimated total spending stands at Rs1,962 billion. With this, a surplus of Rs157 billion is expected. A 10% hike in government employees’ salaries has been proposed. Pensions are set to rise by 7%.
The province plans to allocate Rs680 billion for salaries. Another Rs200 billion will be earmarked for pensions. Of this, Rs189.6 billion will go to settled districts, while Rs4.4 billion is for the tribal areas.
The Annual Development Programme (ADP) is set at Rs547 billion. Rs195 billion is dedicated to settled districts. That’s a 21% increase from the previous year. For tribal districts, the government has proposed Rs294 billion. This amount will cover both ongoing expenses and development needs.
Debt servicing has also been addressed in the financial proposal. The province aims to reduce it from Rs67 billion to Rs55 billion in the coming year.
Several major infrastructure projects are included in the KP Budget 2025-26. These include the Dera-Peshawar Motorway, Peshawar Valley Housing Scheme Expressway, and the Dera Uplift programme. The long-pending Peshawar Ring Road will also receive funding.
In terms of income, KP expects Rs1,342 billion from the federal government. This amount will come under the National Finance Commission (NFC) award. The province will also get Rs108 billion from net hydel profits and Rs55 billion from oil and gas royalties. A further Rs138 billion is expected as war-on-terror compensation.
For comparison, the outgoing 2024-25 budget stood at Rs1,654 billion. The new KP Budget 2025-26 shows a significant rise of Rs416 billion. This increase highlights the expanding administrative and developmental demands of the province.
Once approved by the assembly, the new fiscal plan will take effect from July 1. It marks a new phase in KP’s financial roadmap.
