KP govt finalizes Rs177.52 billion development budget for FY2025-26
- By Web Desk -
- Jun 12, 2025
PESHAWAR: The Khyber Pakhtunkhwa (KP) government has finalized an ambitious development budget of Rs177.52 billion for the upcoming fiscal year 2025-26.
This substantial allocation is earmarked to fund 50 major projects, primarily in collaboration with international donor agencies.
According to documents from the KP Department of Planning and Development, the World Bank and the Asian Development Bank are set to be the leading contributors to these foreign-funded initiatives.
This new allocation represents a significant increase from the current fiscal year’s Rs112.14 billion for such projects, underscoring the provincial government’s heightened focus on key sectors including infrastructure, energy, health, and education.
The proposed allocations highlight several high-impact projects. The KP Road Accessibility Project is set to receive Rs28.10 billion, while the KP Rural Roads Development Project will get Rs22.40 billion. For urban uplift, the KP Cities Improvement Project has been allocated Rs18.20 billion.
In the energy sector, the Balakot Hydropower Project will receive Rs11.20 billion and the Madyan Hydropower Project Rs7 billion, alongside Rs5.60 billion for the Gabral-Kalam Hydropower Project.
Significant investments are also planned for public services. The National Health Support Program is allocated Rs6.44 billion, Human Capital Investment (Health) Rs5.88 billion, and Human Capital Investment (Education) Rs5.04 billion. The Non-DHQ Hospital Revamping project will receive Rs5.60 billion.
Other notable allocations include Rs8.40 billion for Integrated Tourism Development, Rs7 billion for Irrigation and Drainage Rehabilitation, Rs4.20 billion for the KP Rural Investment Program, Rs3.92 billion for the FATA Infrastructure Program, Rs3.92 billion for the Rural Economic Transformation Project, and Rs3.08 billion for the Food Security Support Project.
The KP government anticipates that the budget for 2025-26 will significantly enhance infrastructure, promote sustainable energy solutions, and uplift public services across the province.
With major backing from international development partners, this initiative is expected to play a crucial role in fostering the province’s long-term economic growth and stability.