KP unveils 2,119bn budget, announces increase in salary, pension
- By Web Desk -
- Jun 13, 2025
PESHAWAR: The Khyber Pakhtunkhwa (KP) government announced 10 and seven percent increase in salaries and pension respectively of its employees in the Rs 2,119 billion surplus budget for the fiscal year 2025-26 presented on Friday.
Khyber Pakhtunkhwa Finance Minister Aftab Alam presented the budget with ‘no new tax’ and said that the estimated annual expenditures for the new fiscal year 2025-26 would be Rs 1962 billion with a surplus of Rs157 billion.
Giving the break-up, the finance minister said that provincial government is expecting to get Rs 292.340 billion from the federal government for the merged tribal districts including Rs 80 billion current budget grant, Rs 39.600 annual development program, Rs 50 billion under AIP, Rs 42.740 billion as their share from other provinces and Rs 17 billion for TDPs.
Aftab Alam said that Rs 3.293 billion would be received from PSDP, Rs 1506.92 billion from the federal receipts, Rs129 billion provincial owns receipts and Rs10.250 other receipts, Rs 291.340mn from merged districts receipts and Rs177.188 from federal projects assistance.
Read More: KP Budget 2025-26 at a glance
The minister said said that Rs137.912 would be collected through one percent of the divisible pool on war on terror, Rs. 57.115 billion as straight transfer under the head of gas and oil royalty, Rs 58.151 billion as windfall levy on oil, Rs 34.580 as net hydel profit current year and Rs71.410 as net hydel profit arrears.
Education Budget Increased by 11pc’
Aftab Alam declared a special education emergency to improve literacy rates and reduce out-of-school children, with Rs. 5 billion earmarked for this critical initiative.
He said that in the budget 2025-26, the provincial government has also prioritised upgrading infrastructure in 32,500 public schools, allocating Rs. 5.9 billion for essential facilities, classroom repairs, educational materials, and co-curricular activities including sports and training programs.
He said that these measures reflect the province’s commitment to transforming its education sector through both increased funding and targeted reforms. The enhanced budget aims to address systemic challenges while creating better learning environments for students across KP.
Health
Up by 19 percent, the health budget for fiscal year 2025-26 includes Rs. 11.9 billion for medicines, Rs. 909.2 million for cancer treatment, Rs. 912 million for polio eradication, and expansion of the Sehat Card Plus program to cover liver, kidney, and bone marrow transplants, plus cochlear implants.
Energy & Power
The KP government also proposed the allocation of Rs. 29.6 billion in the budet 2025-26 which it said supports projects like the 84MW Gorkin-Matiltan Hydropower Project (Rs. 1 billion) and solarization of worship places (Rs. 664 million).
Transport & Mass Transit
The finance minister announced Rs. 10 Billion for BRT operations (Rs. 4 billion) and procures new buses (Rs. 4 billion) to improve urban connectivity in Peshawar
Irrigation
In the KP budget 2025-26, Rs. 45.5 billion are proposed to be allocated for water management projects to enhance agricultural productivity and resilience in settled and merged districts.
‘No New Tax’
He said that no new tax has been imposed in the budget 2025-26 rather tax net base has been enhanced with Rs 83.500 billion tax receipts and Rs45.500 billion non tax receipt for the new fiscal year.
Similarly in the budget 2025-26, the other receipts of Rs 10.25 billion would include capital receipts of Rs 0.250 billion and Rs10 billion other ways and means and Rs1147.761 billion as federal tax assignment.