PESHAWAR – The KP budget controversy deepened further on Thursday as former Prime Minister Imran Khan rejected the province’s surplus budget, approved under the IMF’s guidelines. The rejection came after the Khyber Pakhtunkhwa Assembly passed its 2025-26 budget without Khan’s nod.
The backlash was swift. PTI workers turned on Chief Minister Ali Amin Gandapur, accusing him and other MPAs of betrayal. They called the move a breach of party discipline. The question now hangs in the air—why was Khan not consulted before the approval? And what changes did he intend to introduce?
Sources inside the party revealed that Khan strongly opposed the Rs157 billion surplus included in the budget. He argued this figure was added only to satisfy the IMF. According to him, this amount should be spent on the public. Khan wants the province’s funds redirected to essential services like health, education, and environmental protection.
During former CM Mahmood Khan’s rule, PTI had also refused to show any surplus in the budget. The current decision to show a positive balance, insiders say, may damage Pakistan’s negotiations with the IMF, especially with the global lender’s board meeting just days away.
Muhammad Ali Saif, Adviser to CM Gandapur on Information, confirmed that the ex-PM had raised objections. “If the province has surplus funds, then why seek help from the federation?” he asked. However, Saif denied that Khan was angry. He insisted that Khan wanted better allocation of resources, not confrontation.
The KP budget controversy further escalated when a senior PTI leader, requesting anonymity, said that Khan was misled. Certain party members allegedly told him the surplus was included purely on IMF’s demand, which wasn’t true. In reality, the surplus had already been recorded in the current year, and the future figure was a calculated estimate based on the province’s needs.
The leader clarified that the surplus remains within KP’s control and is not returned to Islamabad. Miscommunication within the party has now sparked sharp disagreements over the financial plan.
Adding to the turmoil, Dr Shahbaz Gill acknowledged procedural faults in the budget’s approval. He admitted that PTI’s political committee never gave final consent before it was presented in the Assembly.
Former finance minister Taimur Jhagra also expressed concern during a TV appearance. He stated that although he was part of the committee reviewing the budget, his opinion was not sought in time. Only after the budget passed was he asked for input.
Another committee member disclosed that a firm decision was made on June 22. It was agreed that no budget should be approved without Khan’s review. If meeting him wasn’t possible, the approval could be delayed till June 30 to pressure the federal government. Despite this, Gandapur went ahead and passed the budget on June 24—before any other province had done so.
“What was the rush?” the committee member asked pointedly.
PTI Secretary General Salman Akram Raja echoed similar sentiments on X (formerly Twitter). He wrote that Imran Khan had explicitly instructed not to approve the budget without his greenlight. Raja labeled the June 24 vote as a direct violation of party policy.
Responding to these charges, CM Gandapur defended his decision. He warned that not passing the budget could have caused a constitutional crisis. He further alleged that the federal government was preparing to impose Governor’s Rule in KP. Gandapur said he had attempted to consult Khan but wasn’t granted access to meet him in jail.
Muzzammil Aslam, adviser to the CM on finance, provided clarification on the fiscal details. He stated that the IMF did not impose any specific surplus requirement. Aslam said over Rs100 billion was already available in KP’s account this fiscal year, and that the figure would likely reach Rs125 billion by June 30.
He added that the Rs157 billion surplus was not being returned to the federal government. Instead, it would support debt servicing and development programs. He insisted these figures were projections, not fixed numbers.
For this year, KP’s total budget stands at Rs2,119 billion. The federal government is expected to transfer Rs1,800 billion under the NFC Award and other headings. The projected surplus was based on financial planning—not IMF pressure.
Aslam reiterated that the KP budget controversy was based on misunderstanding. The surplus represents savings that will be used for public good. He assured that the budget reflects Imran Khan’s broader vision. If Khan wants any changes, those will be made.