CM Afridi unveils Rs2.12tr K-P budget, vows no loans for Rs48bn deficit

Other initiatives include Rs2.5 billion in subsidies for electric bikes and rickshaws, Rs2 billion for overseas job seekers, Rs2 billion for the Ehsaas Kisan Programme, and Rs36 billion for the Peshawar Rehabilitation Programme.

Chief Minister Sohail Afridi on Friday presented the province’s fiscal year 2026‑27 budget, describing it as “prosperous” and “revolutionary.” The Rs2.12 trillion financial plan includes a seven per cent increase in salaries and pensions, a rise in the minimum monthly wage to Rs45,000, and major allocations for health, education, and welfare.

Afridi told the assembly that while the budget carried a Rs48 billion deficit, his government would not seek loans to bridge the shortfall. “We will not ask anyone for loans to cover the Rs48 billion budget deficit,” he declared.

Key allocations and relief measures

The Annual Development Programme (ADP) has been set at Rs524 billion, while current expenditure is projected at Rs1.645 trillion. No new taxes have been introduced, and tax relief for merged tribal districts and PATA will continue.

Government employees will see ad hoc relief allowances merged into basic pay, a 50 per cent increase in conveyance allowance, and a rise in special conveyance allowance from Rs6,000 to Rs10,000.

Sector-wise allocations include Rs468 billion for education, Rs334 billion for health, Rs191 billion for law and order, Rs90 billion for local government, Rs42 billion for energy, and Rs29 billion for agriculture.

The Sehat Card Plus programme will receive Rs50 billion, free medicines at public hospitals Rs14.26 billion, and MTIs Rs80 billion. Recruitment of 2,819 doctors, dental surgeons, and nurses is underway. Education allocations include Rs18.5 billion for free textbooks, Rs10.34 billion for governance reforms, and Rs6.14 billion for Parent-Teacher Councils.

Major development projects

The Peshawar Revitalisation Plan includes Rs120 billion worth of projects, such as underpasses, underground electricity cabling, and a new Ring Road. Rs7.5 billion has been earmarked for BRT subsidies, including Rs4.9 billion for electric buses.

Other initiatives include Rs2.5 billion in subsidies for electric bikes and rickshaws, Rs2 billion for overseas job seekers, Rs2 billion for the Ehsaas Kisan Programme, and Rs36 billion for the Peshawar Rehabilitation Programme.

Social welfare allocations include Rs15 billion for the Ehsaas Mustahiq Programme, Rs1 billion for “Ehsaas Maa, Nai Zindagi, Nai Umeed,” Rs1.1 billion for Zamung Kor complexes, and Rs1 billion for journalists’ welfare.

Political protest during speech

Afridi’s address was briefly disrupted when he criticised restrictions on meetings with PTI founder Imran Khan, saying even Khan’s wife Bushra Bibi had been denied access. Opposition lawmakers protested, chanting “This is not a budget speech.” Afridi later returned to budgetary matters, insisting no grants had been allocated for the federal government until PTI demands were met.

Review of outgoing year

Afridi highlighted achievements including 7,952 jobs created, 1,100 schools shifted to solar energy, stipends distributed to 10,000 students, and Rs4.29 billion released for flood victims. Law and order allocations enabled procurement of modern weapons, drones, and surveillance equipment for police.

Fiscal framework

The province expects Rs1.584 trillion from the federal government, including Rs1.24 trillion in tax revenues. Additional receipts include Rs149 billion under the war on terror allocation, Rs53 billion from the oil and gas surcharge, Rs24 billion from the windfall levy on oil, and Rs38 billion in net hydel profit. Own-source revenues are projected at Rs182 billion.

Afridi said the budget reflected the vision of a “Prosperous Khyber-Pakhtunkhwa” in line with PTI founder Imran Khan’s priorities. “Our priority is to ensure that the fruits of development reach every household, every young person, every farmer, every labourer and every business,” he said.