Government of Khyber Pakhtunkhwa Budget 2025–26

4 Min Read

By Junaid Toru

The Government of Khyber Pakhtunkhwa (KP) has presented its Budget for the fiscal year 2025–26, with a total outlay of Rs. 1,962 billion, emphasizing socio-economic development, public welfare, and fiscal stability without imposing any new taxes.

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Revenue Estimates

Rs. 1,506 billion from Federal Transfers

Rs. 129 billion from Provincial Revenues

Rs. 292 billion for Merged Districts

Rs. 171 billion through foreign-funded projects

Expenditure Plan

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Rs. 1,415 billion earmarked for Current Expenditures

Rs. 1,255 billion for Settled Districts

Rs. 160 billion for Merged Districts

Rs. 547 billion proposed for Developmental Projects

No New Taxes:

No fresh taxes introduced across the province.

Stamp duty on property transactions reduced from 2% to 1%.

Property tax exemption for residential/commercial properties up to 4.9 marlas.

Hotel Bed Tax slashed from 10% to 7%.

No new taxation in PATA and merged tribal districts (ex-FATA).

Health Sector:

Health budget increased from Rs. 232 billion to Rs. 276 billion.

Sehat Card Plus funding in settled districts enhanced to Rs. 35 billion.

Establishment of neonatal care units in 5 districts.

Cardiology satellite centers to be launched in Mardan and Bannu.

Education:

Primary education allocation raised to Rs. 363 billion.

Rs. 5 billion set aside to enroll out-of-school children.

Free textbooks to be provided with Rs. 8.5 billion funding.

Rs. 1 billion allocated for temporary teacher hiring.

Higher education budget increased to Rs. 50 billion.

University funding tripled from Rs. 3 billion to Rs. 10 billion.

5 new colleges planned; scholarship endowment fund enhanced by Rs. 1.24 billion.

Police & Security:

Police budget raised to Rs. 158 billion.

Rs. 13 billion allocated for weapons, vehicles, and logistics.

Expansion of Safe City Project and new command centers.

Police Martyrs Package significantly upgraded:

Rs. 11 million (Constable–Inspector)

Rs. 16 million (DSP/ASP)

Rs. 21 million (SP–DIG)

 

Infrastructure Development:

Rs. 689 million for flood affected roads in Chitral.

Rs. 250 million for Prekot Bypass, Swat.

Dualization of Bannu Ghulam Khan Road at a cost of Rs. 9.6 billion.

LifeStar Ambulance service enhanced to Rs. 17 billion.

Water, Agriculture & Energy:

Clean drinking water:

Northern districts: Rs. 1.287 billion

Southern: Rs. 575 million

Central: Rs. 175 million

Merged districts: Rs. 725 million

200 solar powered tube wells to be installed.

Agriculture initiative: Rs. 500 million for horse breeding in 4 districts.

Irrigation budget raised to Rs. 46 billion.

Public Health Engineering: Rs. 32 billion.

Local Governance & Welfare:

Local Government allocation: Rs. 55 billion.

Modern slaughterhouses in Peshawar, Charsadda, DI Khan, Swat, and Haripur (Rs. 800 million).

Autism Centers to be set up at divisional levels (Rs. 1.2 billion).

Zamung Kor: Five new campuses for orphans (Rs. 600 million).

Youth Affairs budget increased to Rs. 11.6 billion.

Salary & Wage Measures:

10% increase in salaries for government employees.

7% increase in pensions.

Minimum wage raised from Rs. 36,000 to Rs. 40,000.

Disparity Allowance increased to 20%.

Police salaries (Constable to Inspector) brought in line with Punjab Police scale.