KPK Budget 2026-27 Presented Amidst Heated Debate Today

Updated: 9:22 PM PKT — June 19, 2026

Further details from the Khyber Pakhtunkhwa budget for fiscal year 2026-27 reveal significant allocations across various sectors. The Annual Development Program has been allocated Rs 524 billion, with Rs 35 billion specifically earmarked for the merged tribal districts. For law and order, the budget proposes Rs 191 billion.

Key social welfare and infrastructure initiatives include Rs 50 billion for the Health Card Program, Rs 15 billion for the Ehsaas Mustahiq Program, and Rs 36 billion for the Peshawar Rehabilitation Program. Other notable allocations include Rs 29 billion for agriculture, Rs 42 billion for the energy sector, Rs 2.5 billion for an electric bikes and rickshaws scheme, and Rs 2 billion for interest-free loans for overseas employment.

Updated: 6:48 PM PKT — June 19, 2026

Further details from the Khyber Pakhtunkhwa budget reveal a proposed 7% increase in salaries and pensions for government employees, with the minimum monthly wage set to rise to Rs 45,000. The budget, presented by Chief Minister Muhammad Sohail Afridi, carries an estimated deficit of Rs 48 billion, based on total estimated revenues of Rs 2.122 trillion against expenditures of Rs 2.170 trillion.

Key allocations include Rs 468 billion for education and Rs 334 billion for health, with Rs 50 billion specifically earmarked for the Sehat Card program. For law and order, Rs 191 billion has been proposed. Other significant proposals include Rs 15 billion for the Ehsaas Mustahiq Program, Rs 7.5 billion for the Peshawar BRT, and Rs 2.5 billion for an electric bikes and rickshaws initiative.

Updated: 4:42 PM PKT — June 19, 2026

The Khyber Pakhtunkhwa government has proposed a budget of Rs 2.17 trillion for the fiscal year 2026-27, allocating over Rs 524 billion for its Annual Development Programme and Rs 1.645 trillion for current expenditures. The province anticipates generating Rs 150 billion from its own revenue sources, while relying heavily on over Rs 1.584 trillion in federal transfers. This includes more than Rs 1.540 trillion from federal tax revenues and Rs 149 billion for counter-terrorism efforts. Additional income is expected from the energy sector.

On the expenditure side, the budget projects a 13% increase in salary spending and a 17% rise in pension payments. To boost revenue, the finance bill proposes a 30% discount for homeowners who clear all outstanding residential property dues by June 30, 2026, but warns of penalties for those who fail to settle liabilities by the end of the year. The tax on hotels without a point-of-sale system will be calculated at 10% of the room rent, using half of the available accommodation as a benchmark.

Updated: 4:11 PM PKT — June 19, 2026

Further details from Khyber Pakhtunkhwa’s finance bill reveal proposals for new and amended taxes. The bill suggests a new annual tax of Rs 1,000 on auto-rickshaws and a per-seat tax on commercial vehicles, set at Rs 400 for vans with 6-15 seats and Rs 500 for larger vehicles. A new tax structure for hotels is also proposed, levying 5% on room bookings for establishments using a point-of-sale system, and a formula-based tax for those without.

The bill also includes incentives, such as a 30% rebate for the lump-sum payment of outstanding residential property taxes by June 30, 2026. On the revenue side, the province expects to receive over Rs 1,584 billion from federal transfers, including more than Rs 149 billion for the war on terror and over Rs 77 billion combined from oil and gas surcharges and levies.

Updated: 3:09 PM PKT — June 19, 2026

The Khyber Pakhtunkhwa cabinet has formally approved the budget proposals for the upcoming fiscal year. The total proposed outlay exceeds Rs 2,170 billion, with a potential 7% increase in the salaries and pensions of government employees.

The Annual Development Programme is slated to be over Rs 519 billion. This includes Rs 235 billion from the province’s own resources, Rs 150 billion from international aid agencies, Rs 27 billion for the merged districts, and Rs 52 billion for an accelerated development program. Additionally, Rs 55 billion has been proposed for local governments, while the province anticipates receiving Rs 1,443 billion from the federal government.

Updated: 1:06 PM PKT — June 19, 2026

The presentation of the Khyber Pakhtunkhwa budget has revealed internal divisions within the ruling Pakistan Tehreek-e-Insaf (PTI). A group of disgruntled party leaders, including former provincial assembly speaker Mushtaq Ghani, has expressed reservations and called a meeting to formulate a strategy.

Ghani noted the Chief Minister had previously committed to not presenting the budget before meeting the PTI founder. In contrast, PTI Chairman Barrister Gohar Khan defended the move, describing the budget’s passage as a constitutional and legal responsibility of the province, independent of the federal government.