QUETTA: The Balochistan government on Wednesday unveiled a Rs1.089 trillion surplus budget for fiscal year 2026-27, increasing salaries and pensions of government employees by seven percent, expanding allocations for health and education, and announcing a series of tax relief measures without imposing any new taxes.
Provincial Finance Minister Mir Shoaib Nosherwani presented the budget in the Balochistan Assembly during a session presided over by Speaker Captain Abdul Khaliq Achakzai (retd).
He said the budget reflected the government’s commitment to fiscal discipline, development and public welfare despite economic challenges. The minister also claimed that 115 percent of the allocated development funds had been utilised during the outgoing fiscal year, describing it as the highest utilisation rate in the province’s history.
Nosherwani told the assembly that the total budget outlay for FY2026-27 had been fixed at Rs1,089.26 billion, while total revenues were estimated at Rs1,134.92 billion, creating a surplus of Rs45.66 billion. He said the province expected to receive Rs800.13 billion through federal transfers, while revenue from provincial resources had been projected at Rs170.09 billion.
Balochistan budget composition 2026-27: Major expenditure components in Rs billion; Current expenditure — Rs797.82bn; Provincial PSDP — Rs206.61bn; Federal development projects — Rs44.56bn; and Foreign-funded projects — Rs40.38bn.
The government expects to receive Rs65.34 billion for foreign-funded projects, while project financing and capital receipts are estimated at Rs68.75 billion. Cash carry-forward balances amounting to Rs30.61 billion will also contribute to provincial revenues. The finance minister said the positive balance between income and expenditure reflected prudent financial management and fiscal discipline.
The minister said Rs797.82 billion had been allocated for current expenditure during the next fiscal year. Foreign-funded projects will account for Rs40.38 billion in spending, while federal development projects will receive Rs44.56 billion.
The Provincial Public Sector Development Programme (PSDP) has been set at Rs206.61 billion. According to budget documents, the overall development budget stands at Rs291.55 billion, including federal and foreign-funded projects, underscoring the government’s focus on infrastructure and public service delivery.
Major sector allocations in Balochistan budget FY2026-27 are in billion rupees; Education Rs157.28bn; Law and order Rs107.92bn; Health Rs96bn; Agriculture Rs23.6bn; Social security Rs15.13bn; and Sports and recreation Rs8.54bn.
Salaries and pensions increased: Providing relief to government employees, the provincial government announced a seven percent increase in salaries and pensions on the pattern of the federal government.
Nosherwani said the increase had been approved despite fiscal pressures and reflected the government’s commitment to supporting public servants amid rising living costs.
No new taxes, investment incentives announced: The finance minister described the budget as a tax-free budget, emphasising that no new taxes were being imposed.
Instead, the government introduced several incentives aimed at encouraging investment and economic activity. Capital value tax and stamp duty on property transfers have been reduced from two percent to one percent. Sales tax on educational services has been reduced to zero percent, while taxes on new electric vehicles have been waived.
The government has also abolished sales tax on public transport and public property insurance. In addition, provincial taxes on foreign investment in export processing zones have been waived to attract industrial investment and stimulate economic growth.