PESHAWAR: Chief Minister Khyber Pakhtunkhwa, Muhammad Sohail Afridi has said that the provincial government has collected a revenue more than Rs.150 billion during financial year (FY) 2025-26 against the target of Rs.129 billion, setting a new record of revenue collection.
Addressing the Public Financial Management and Revenue Mobilization Reforms event in Islamabad, the Chief Minister noted that the province’s annual revenue reached at only Rs62 billion over the previous 74 years, saying the comprehensive reforms have increased this figure to over Rs150 billion.
He further stated that while the revenue target for FY 2026-27 has been set at Rs180 billion, the government aims to raise collections to Rs200 billion through continued digitalization and institutional reforms.
The chief minister attributed the historic growth in own source revenue through governance reforms, institutional strengthening and improved resource management without imposing any new taxes. He said governance reforms have significantly reduced opportunities for leakages and strengthened public financial management, resulting in sustained growth in provincial revenues. He added that strong political commitment has enabled Khyber Pakhtunkhwa to consistently exceed its revenue targets.
Highlighting the government’s digital transformation agenda, the Chief Minister announced that all provincial government departments will be fully digitized during the current year. He said online movement and approval of official summaries, digital tracking of government files and expanded online public services are already improving transparency, efficiency and service delivery across government institutions.
Speaking on the province’s hydropower potential, the Chief Minister said the government is working to establish its own electricity transmission line to maximize the benefits of low-cost hydropower generation. He said the initiative would promote industrialization, attract investment and create new employment opportunities adding that discussions with development partners and other stakeholders are underway, as the project is considered both economically viable and strategically important for the province.
Referring to environmental sustainability, the Chief Minister noted that Khyber Pakhtunkhwa contains approximately 45 percent of Pakistan’s forest resources, with forests covering 27 percent of the province’s land area. He said the government aims to increase forest cover to 30 percent while also converting provincial motorways into Greenways as part of broader climate resilience and environmental conservation efforts.
The Chief Minister also shared his assessment of Pakistan’s broader economic challenges. He said sustainable economic growth requires structural reforms, increased productivity, enhanced exports and prudent fiscal management. He stressed the need for comprehensive policies to strengthen economic competitiveness, create employment opportunities for the country’s youth, address trade imbalances and curb the growing trend of brain drain.
Commenting on the federal government’s economic management, the Chief Minister said the federation had fallen significantly short of its revenue targets and called for stronger policies to expand the national revenue base, promote exports and improve fiscal sustainability.
He expressed concern over rising public debt, widening trade imbalances and the continued outflow of skilled human capital, emphasizing that these issues require comprehensive and long-term policy responses. He emphasized that Pakistan’s large youth population represents a significant national asset that requires effective policy support, investment in skills and expanded employment opportunities.
The Chief Minister appreciated the support of the World Bank and the Khyber Pakhtunkhwa Finance Department in implementing key public financial management reforms, stating that their collaboration has played an important role in achieving the province’s record revenue performance.
The event reviewed the successful completion and outcomes of the Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management Program (KPRMP) and the Khyber Pakhtunkhwa Spending Effectively for Enhanced Development (KP-SPEED) programme, implemented with World Bank support.
The initiatives have strengthened public financial management systems, enhanced domestic revenue mobilization, improved public resource management and promoted more transparent, efficient and results-oriented development spending across the province.
Advisor to CM for Finance Muzammil Aslam, World Bank’s Country Director Bolorma Amgaabazar also addressed the event.
Copyright Business Recorder, 2026
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