Balochistan announced its tax-free budget for the fiscal year 2026-27 on Wednesday, totaling Rs1.089 trillion ($3.92 billion). The province anticipates a fiscal surplus, primarily driven by a significant increase in federal revenue transfers.
Presenting the budget in the provincial assembly, Finance Minister Mir Shoaib Nosherwani outlined that the total estimated revenue for the province stands at Rs1.134 trillion, resulting in a surplus of Rs45.66 billion. He emphasized that no new taxes have been introduced, while several existing levies have been reduced to encourage economic growth within the region.
Nosherwani attributed the surplus to strict financial discipline and careful management of expenditures across both development and non-development sectors. The province will continue to depend heavily on its share of federal tax revenues as per the National Finance Commission (NFC) Award, with federal transfers expected to remain the primary revenue source.
Federal transfers are estimated at Rs800.13 billion, forming the largest portion of the province’s income. Additionally, the provincial government aims to generate Rs170.09 billion through its own tax and non-tax revenue collections. Foreign-funded projects are projected to contribute Rs65.34 billion, while financing from project funds and capital receipts is expected to total Rs68.75 billion. The province also plans to carry forward a cash balance of Rs30.61 billion.
To stimulate further growth, the government has reduced the Capital Value Tax (CVT) and stamp duty on property transfers from 2 percent to 1 percent. Furthermore, a zero sales tax rate has been declared on educational services.
Regarding expenditures, Rs797.82 billion have been allocated for ongoing current expenses. The Public Sector Development Programme (PSDP) has been allotted Rs206.61 billion, with an additional Rs44.56 billion designated for federally-funded development projects. Foreign-funded development initiatives will receive Rs40.38 billion.
In a significant development for social welfare, the finance minister announced a 7 percent increase in salaries and pensions for provincial government employees. The government has also earmarked an extra Rs1.5 billion for the Balochistan Health Card programme to expand universal health insurance coverage.
Education support remains a priority, with Rs2.82 billion allocated to the Balochistan Education Support Fund to assist disadvantaged students, alongside Rs54 million for the Shaheed Benazir Bhutto Scholarship Programme.
To address youth unemployment, the government plans to create 5,000 new public sector jobs across various departments. Additionally, interest-free loan schemes will be introduced to promote women’s economic empowerment.
This surplus budget arrives at a crucial time as Balochistan seeks to enhance its security and transport infrastructure to attract multinational investments, particularly in the vicinity of the deep-sea port of Gwadar.
