Overview
- Khyber Pakhtunkhwa presented a Rs2.17 trillion main budget and on Saturday increased it with a Rs121.74 billion supplementary package that raised the development outlay to about Rs608 billion and added funds for armoured police vehicles and the Peshawar Revitalization Project.
- The KP plan includes a seven percent pay and pension rise and a Rs5,000 boost to the minimum monthly wage to Rs45,000 while allocating major project sums such as Rs36 billion for Peshawar rehabilitation and Rs7.5 billion for the Peshawar BRT.
- Federal budget proceedings moved forward in the National Assembly on Sunday when lawmakers approved dozens of demands for grants worth trillions and rejected hundreds of opposition cut motions, clearing large allocations for defence, education, health and infrastructure.
- Fiscal sustainability questions persist because KP reported a historic shortfall last year after federal transfers underperformed and the province says it will cover its modest Rs48 billion estimated deficit without seeking Islamabad’s help, a claim that analysts say raises credibility concerns.
- Political tensions and regional equity disputes are shaping debates with Hazara and other areas complaining about uneven project allocations and opposition benches using cut motions to press for different priorities and larger wage increases for public servants.