Rs 2.1 Trillion Surplus Budget By KP Govt: FY 2025-26 Update

Here is a latest update for all the residents of Khyber Pakhtoon Kha and people across Pakistan related to the Budget pass of FY 2025-26. For the fiscal year 2025–2026, the Khyber Pakhtunkhwa government published a surplus budget of Rs2.12 trillion on Friday.

Rs 2.1 Trillion Surplus Budget By KP Govt: FY 2025-26 Update

Check out the latest detail related to the new surplus budget update issued by the KP Governor and their main focus are on which organizations. 

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KP Budget FY 2025-26: Latest Update  

The budget proposes a 10% increase in government salaries and a 7% increase in pensions, in addition to a Rs547 billion development program. The minimum pay has increased from Rs36,000 to Rs40,000 per month.

KP’s CM Slams Against Federal Govt

Initially, a power loss interrupted the assembly session. Speaking to parliamentarians, CM Gandapur stated that the KP governor had failed to call the assembly, hence a request was required to call the meeting. He said his administration will not help collect federal taxes and called the federal budget “deceptive.”

The 15% disparity allowance for staff members who do not get executive allowances has been raised to 20%.

Also Read: Budget 2025-26: Major Tax Relief Proposed for Salaried Class [Update]

Vital Tax Relief Includes

Following are the key tax relief demand for KP people:

  • Stamp duty on transfers of residential and commercial real estate will be lowered from 2% to 1%.
  • properties under 4.9 marlas are exempt from taxes.
  • Hotel bed tax is being lowered from 10% to 7%.
  • removal of professional tax on Rs 36,000 per month.
  • electric car registration and token tax waivers.

KP Faces Major Budget Gaps Despite Revenue Targets

According to the budget documents, there will likely be a Rs267 billion gap under the NFC Award. The federal government also owes Khyber Pakhtunkhwa Rs58 billion in oil and gas earnings and Rs71 billion in net hydro profits. 

The province’s own revenue target has been set at Rs129 billion, despite the expected Rs177 billion in foreign aid receipts. This indicates a serious financial struggle for KP in the upcoming fiscal year.

KP’s Annual Development Budget Increase To Rs 153bn

According to Muzammil Aslam, finance adviser for Khyber Pakhtunkhwa, the new provincial budget has established financial and development priorities while taking local conditions into consideration.

According to Aslam, KP’s yearly development budget has been raised to Rs153 billion, with Rs419 billion worth of projects already finished. There are 810 new development plans for the next fiscal year, with a total estimated cost of more than Rs500 billion.

He added that in the upcoming fiscal year, no additional loans are being taken out. However, when starting large-scale projects, borrowing might be taken into consideration. The government presently receives a daily return of Rs60 million from the Rs150 billion it has set aside for debt servicing.

Conclusion

The KP government’s Rs2.12 trillion surplus budget for FY 2025–26 focuses on development, salary increases, and tax relief for the public. While the province aims for growth without taking new loans, it still faces financial challenges due to unpaid federal dues and a major funding gap under the NFC Award. Despite the hurdles, the government remains committed to progress through strategic planning and targeted development initiatives.

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