PTI Chairman Barrister Gohar Ali Khan clarified on Friday that the Khyber Pakhtunkhwa (KP) budget is being approved not at the behest of the federal government but as a constitutional and legal obligation of the province. He emphasized that passing the budget is an internal provincial matter, independent of the Centre’s influence. Gohar confirmed that the budget would be passed and that all members of the provincial assembly, including Ali Amin Gandapur, are expected to participate in the session.
The provincial government is scheduled to present its budget for the fiscal year 2026-27 at 2 pm today. Meanwhile, senior PTI leader Shaukat Yousafzai revealed that Chief Minister Sohail Afridi had initially considered postponing the budget until a meeting with PTI founder was arranged. One suggestion was to present a short-term, three-month budget if legal challenges arose. However, legal advisors warned this would stall development projects and only cover salaries and pensions.
Ultimately, the party decided to present the full budget to safeguard the province’s development agenda and public interest. Yousafzai stressed that despite some internal reservations, no rebellion exists within the party ranks. Lawmakers with concerns intend to voice them during the assembly debates but will vote in alignment with PTI’s position. He also dismissed rumors of back-channel negotiations, asserting that public consultation with party leadership remains a right of the province’s people.
Yousafzai argued that legal barriers do not prevent meetings with the PTI founder, asserting that these are being blocked for political motives. The proposed KP budget totals over Rs2.170 trillion and includes a development program exceeding Rs519 billion. Of this, Rs150 billion is expected from international donor agencies. The budget allocates Rs55 billion for local governments, incorporates a 7% raise in salaries and pensions for government employees, and merges the 2022 and 2025 ad hoc relief allowances.
Provincial receipts from the federal government are projected at Rs1.443 trillion, with net hydel profits estimated at around Rs105 billion and own-source revenue at Rs180 billion. The plan includes more than 900 new development schemes. Yousafzai noted that the final budget size is anticipated to be close to Rs2.2 trillion, with Rs235 billion earmarked specifically for development projects.
The provincial cabinet is finalizing salary increments aimed at ensuring minimum wages meet basic living costs, especially given soaring inflation and minimal federal relief. No new taxes will be introduced; instead, some taxes will be reduced to lessen public burden, making the budget effectively tax-free. The provincial government has intentionally excluded grant-in-aid payments in protest against the federal government’s alleged failure to provide KP its rightful financial share.
Yousafzai added that the chief minister and his team have strived to keep the budget from imposing extra pressure on citizens. The budget will be realistic and deficit-based, with an expected shortfall of about Rs50 billion, and expenditures will align with actual federal funds received. Key focus areas include education, health, tourism, mining, water resources, and power generation to enhance the province’s self-reliance.
Work continues on both small and large power projects, with special emphasis on tourism development. Yousafzai criticized the federal government for insufficient cooperation, highlighting delays in National Highway Authority road projects and calling on Islamabad to support KP’s developmental efforts.
Separately, former provincial assembly speaker and PTI MPA Mushtaq Ghani announced a meeting of 35 like-minded PTI lawmakers at 2 pm to finalize their strategy on the budget. He noted that while the chief minister had earlier insisted the budget would not be presented before a meeting with the PTI founder, that stance has since changed. Ghani questioned the effectiveness of presenting the budget as a means to pressure the federal government and expressed doubts that any significant pressure is being applied to secure meetings with the party leader.
