Business & Finance

KP govt presents Rs2.17 trillion budget 2026-27

  • The budget carries a deficit of Rs48 billion
Published June 19, 2026 Updated June 19, 2026 08:51pm
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Khyber Pakhtunkhwa Chief Minister Sohail Afridi on Friday presented a budget of Rs 2.170 trillion for the fiscal year 2026–27, proposing substantial allocations for development projects, social welfare, healthcare, education, and law and order, carrying a deficit of Rs 48 billion.

Presenting budget at the floor of KP Assembly with Speaker Babar Salim Swati, Chief Minister KP Sohail Afridi said that Rs 524 billion has been proposed for the Annual Development Program, while Rs 1.645 trillion allocated for current expenditures. Likewise, Rs 35 billion earmarked for the merged tribal districts, while the overall budget deficit is estimated at Rs 48 billion.

The provincial government has also proposed a seven percent increase in salaries and pensions for government employees of KP. Similarly, it has proposed raising the minimum monthly wage by Rs 5,000, bringing it to Rs 45,000.

For the law and order sector, the budget recommended an allocation of Rs 191 billion, while Rs 200 million proposed for the Good Governance Road map.

In the social welfare sector, Rs 15 billion has been proposed for the Ehsaas Mustahiq Program and Rs 50 billion for the Health Card Program. In addition, Rs 80 billion has been allocated for MTI hospitals.

The CM said the budget also includes proposed allocations of Rs 36 billion for the Peshawar Rehabilitation Program, Rs 7.5 billion for the Peshawar BRT, and Rs 4 billion for the Khushhal Hazara Program.

To promote the self-reliance of minority communities, Rs 51 million has been recommended, while Rs 2 billion has been allocated for the Ehsaas Kisan Program. Another Rs 2 billion has been proposed to provide interest-free loans to individuals seeking employment opportunities abroad.

The CM said provincial government has also proposed allocating Rs 2.5 billion for an electric bikes and rickshaws scheme.

The CM said total of Rs 334 billion allocated for the health sector and Rs 468 billion for education. Proposed allocations include Rs 90 billion for the Local Government Department, Rs 29 billion for the Home Department, and Rs 14 billion for the transport sector.

Similarly, the budget proposed Rs 29 billion for agriculture, Rs 42 billion for the energy sector, and Rs 28 billion for the Zakat Fund.

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