Peshawar – 12 June 2025: The Government of Khyber Pakhtunkhwa presented a historic Rs. 2.1 trillion budget for fiscal year 2025–26, achieving a surplus of Rs. 157 billion. Despite economic pressure and limited federal cooperation, the province has claimed strong fiscal discipline under the leadership of Chief Minister Ali Amin Gandapur.
The budget includes Rs. 1.415 trillion in current expenditures and Rs. 547 billion in development spending. The government emphasized that this was not just a financial plan, but a roadmap for the public’s prosperity and the province’s economic growth.
Key revenue sources include Rs. 1.5 trillion in federal receipts, Rs. 129 billion in provincial receipts, and Rs. 292 billion allocated for merged districts. Additionally, Rs. 177 billion will be sourced from foreign-assisted projects.
The budget carries no new taxes, while offering targeted relief to low-income populations. Efforts to increase revenue are focused on broadening the tax net rather than raising rates. The province also introduced tax cuts on property transfers, hospitality, and green vehicles.
The Debt Management Fund has been activated with Rs. 150 billion to ensure timely repayment of provincial loans, reflecting a long-term commitment to economic stability.
The government emphasized that achieving a surplus under such challenging circumstances is a result of strategic planning, efficient resource utilization, and the public’s trust.
