The Khyber Pakhtunkhwa government is set to present a balanced budget worth approximately Rs2.28 trillion for the fiscal year 2026-27, with a strong emphasis on development, public welfare and economic growth. The provincial cabinet approved the financial plan during a meeting chaired by Chief Minister Sohail Afridi before its presentation in the Provincial Assembly.
The proposed budget maintains a balance between income and expenditure, both estimated at Rs2.275 trillion. A significant portion of provincial revenue is expected to come from the federal divisible pool, which is projected to contribute Rs1.443 trillion. In addition, the province anticipates receiving Rs100 billion in net hydel profit and more than Rs150 billion through its own revenue sources.
A major highlight of the budget is the Annual Development Programme exceeding Rs550 billion, covering nearly 2,500 projects across the province. Furthermore, 80 percent of development funds have been earmarked for ongoing schemes to ensure timely completion, while the remaining allocation will support new projects aimed at accelerating growth and improving public services.
The government has also prioritized healthcare by proposing Rs50 billion for the Health Card programme and an additional Rs15 billion for medicines in public hospitals. Meanwhile, infrastructure development remains a key focus, with Rs56 billion allocated for roads and bridges to improve connectivity, facilitate trade and strengthen economic activity across urban and rural areas.
In the education sector, the budget includes 72 Chief Minister Model School projects costing Rs9.5 billion to enhance learning opportunities and educational facilities. At the same time, the government has incorporated the Rs1 trillion Roshan Pakistan project for merged districts, reflecting its commitment to accelerating development and improving living standards in previously underserved regions.
The budget also introduces support measures for youth and farmers through interest-free loan schemes and agricultural assistance programmes. Following its presentation, the Khyber Pakhtunkhwa Assembly will hold four days of debate before the expected approval on June 28, setting the stage for the province’s economic and social priorities during the next fiscal year.