KP chief minister presents Rs2.12tr budget for 2027-28

PESHAWAR: Khyber Pakhtunkhwa Chief Minister Sohail Afridi presented a Rs2.122 trillion ($7.63 billion) provincial budget for the fiscal year before the provincial assembly, unveiling a tax-free financial plan focused heavily on social welfare, health coverage, and infrastructure development..

As the chief minister started presenting the budget, opposition lawmakers stood up, chanted slogans, and held placards while gathering in front of the speaker’s podium.

The fiscal plan relies heavily on federal transfers, with Islamabad expected to provide Rs1.584 trillion to the province.

Terming the fiscal layout as “pro-people,” Afridi announced a headline 7 per cent increase in salaries and pensions for government employees, alongside a proposal to raise the minimum wage to Rs45,000.

Terming the fiscal layout as “pro-people,” Afridi announced a headline 7 per cent increase in salaries and pensions for government employees, alongside a proposal to raise the minimum wage to Rs45,000.

He said that the provincial government has allocated its largest resource shares toward education and healthcare, dedicating Rs468 billion and Rs334 billion to the sectors respectively.

He said that the government has set aside Rs191 billion for law and order and an additional Rs29 billion for the KP Home Department’s operational costs.

He said that Rs90 billion have been allocated for local governments, Rs42 billion for energy and power generation, Rs29 billion for agriculture, Rs28 billion for religious affairs and Zakat, and Rs14 billion for transport infrastructure.

He said that the provincial government places universal health coverage and targeted poverty alleviation at the core of its development initiatives.

Afridi said that the flagship “Sehat Card” health insurance programme has been allocated Rs50 billion, while Medical Teaching Institution (MTI) hospitals will receive Rs80 billion.

Furthermore, Afridi said Rs14 billion had been earmarked for free medicines in public sector hospitals, while an additional Rs4 billion had been allocated for the construction of a new general hospital in the province.

On social protection, he said the “Ehsaas Mustahiq” welfare programme would receive Rs150 billion, alongside Rs28 billion for Zakat distribution. He added that Rs1.1 billion had been set aside for the “Zamung Kor” complex for street children, Rs100 million for transgender welfare and Rs51 million for religious minorities.

He said the province’s Annual Development Programme (ADP) comprised 2,765 projects, including 1,564 ongoing and 1,201 new schemes, with an estimated long-term cost of Rs2.448 trillion. The development portfolio includes 2,070 projects in settled districts, 318 in merged tribal districts and 377 under an accelerated development framework.

For immediate development spending, Afridi said Rs52 billion had been allocated for road improvements, Rs36 billion under the Peshawar Rehabilitation Programme, Rs34.24 billion for urban development and Rs20.07 billion for multi-sector initiatives. He added that Rs20.17 billion had been set aside for the Home Department’s capital needs, Rs16.33 billion for health sector expansion, Rs10.31 billion for clean water projects, Rs7.25 billion for education and Rs6.63 billion for sports and tourism.

To improve urban mobility and promote clean energy, the budget includes Rs7.5 billion in subsidies for the Peshawar Bus Rapid Transit (BRT) system and Rs2.5 billion to support electric bikes and rickshaws. Afridi also announced a Rs1.5 billion youth internship programme and Rs200 million for the “Ehsaas Nojawan” scheme in merged districts.

In the education sector, he said Rs10 billion would be spent on upgrading primary and secondary schools, along with Rs362 million for the construction of 14 new colleges.

Regional development allocations include Rs44 billion under the “Khushal Hazara” programme, Rs150 million for sports stadiums across eight Hazara divisions and Rs800 million for tourism development in the merged tribal districts.