Surplus budgets
The restive provinces of Khyber-Pakhtunkhwa and Balochistan have endeavoured to post budget surplus to the tune of Rs157 billion and Rs36.5 billion, respectively, as they went on to project massive developmental outlays for FY26. Khyber-Pakhtunkhwa led from the front as it came up with categorical statistics in a budget of Rs2119 billion, allocating Rs363 billion for education and Rs276 billion for health; raising the minimum wage to Rs40,000 per month (a step that the federal budget fell short of); and increasing salaries by 10% and pensions by 7%.
Likewise, the law and order-infected province has kept Rs158 billion for local security edifice (while expecting Rs1,147 billion in federal transfers) and allocating a generous Rs547 billion under Annual Development Programme, including Rs40 billion for the merged districts. The PTI-governed province has, however, complained that Islamabad has deducted Rs42 billion under the NFC Award.
Balochistan with a record outlay of Rs1.03 trillion has vowed to go on a development spree with an allocation of Rs349.5 billion. The provincial finance guru surprised all by claiming that the province has fully utilised the outgoing year's developmental budget of Rs219 billion — something that is contestable given the abject backwardness and revulsion all around.
The province's total receipts are projected at Rs801 billion, both from federal and straight transfers, as it goes on to generate Rs101 billion indigenously (including Rs48 billion from levy on services), apart from Rs104.5 billion from federal and foreign assistance for development.
Surprisingly though, there is no clear mention of allocations for health, education and law and order, whereas the troublesome province has come up with special funds of: Rs18 billion for eight more safe cities; Rs25 billion for Mashkel dam construction; Rs20 billion for public welfare; and Rs3 billion for sanitation schemes and 1,000 water filtration plants.
Last but not least, a first-of-its-kind climate grant of Rs500 million will be a litmus test as drought and floods repeatedly take a toll on the desolate province.
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Express Tribune
08-08-2025
- Express Tribune
ECNEC approves Rs1.5tr for 27 projects
Listen to article In an unprecedented development, the federal government on Thursday approved 27 projects worth over Rs1.5 trillion in just a few hours, without much scrutiny. Most projects were related to Sindh and Balochistan. Key schemes include the Sukkur-Hyderabad Motorway, the reconstruction of a National Highway in Sindh, and upgrades to the dangerous N-25 road in Balochistan. Several Sindh-focused projects were also approved, despite these violating the National Fiscal Pact signed under the International Monetary Fund (IMF) programme. The Executive Committee of the National Economic Council (ECNEC), chaired by Deputy Prime Minister Ishaq Dar, approved 28 projects spanning energy, infrastructure, education, health, environment, and public service across both federal and provincial levels, according to an announcement from Dar's office. Planning ministry officials later clarified that 27 projects were approved, while the Sehat Sahulat Card scheme was referred to a committee. Dar reaffirmed the government's commitment to inclusive, sustainable growth, institutional reforms, and long-term economic stability. However, the ECNEC meeting lasted barely two hours and approved Rs1.5 trillion worth of projects. Thirteen additional items, mostly linked to Pakistan Peoples' Party (PPP)-backed schemes in Sindh and road works in Balochistan, were also cleared. The federal government approved the construction of the Sukkur-Hyderabad Motorway (M-6) at a cost of Rs363 billion, Planning Minister Ahsan Iqbal confirmed. A Chinese company has reportedly offered to build all five sections of the motorway. While the Islamic Development Bank is funding two sections, the government may allow Chinese companies to undertake the entire construction. This is the fourth time the project has been approved after previous attempts under the public-private partnership (PPP) model failed. Initially approved in 2020 at Rs165 billion, the project cost was revised to Rs191 billion in 2021, then to Rs308 billion in 2022. The current approval at Rs363 billion marks a 121% increase from the original cost. The project is now part of the Public Sector Development Programme (PSDP). The Hyderabad-Sukkur Motorway is the only missing north-south highway link and is a top priority for the PPP, which tied its budget support to inclusion of this project in the PSDP. The ECNEC also approved half a dozen Sindh government projects, funded by Rs86 billion from federal resources, another result of the PPP-Pakistan Muslim League-Nawaz (PML-N) budget negotiations. Three sections of the Karachi-Quetta-Chaman "killer road", the N-25 or Balochistan Expressway, were approved at a total cost of Rs415 billion. The dualisation of the 278km stretch between Karachi and Quetta will cost Rs183.4 billion over three years, with Rs33 billion allocated for FY26. Another 332km stretch, Khuzdar to Kuchlak, will cost Rs99 billion, with Rs34 billion allocated this year. The Karoro Wadh and Khuzdar-Chaman sections (104km) were approved for Rs133 billion, with Rs33 billion allocated for the current fiscal year. The Green Pakistan Programme was upscaled to Rs122.2 billion, focusing on forest restoration, biodiversity, and non-timber forest markets. Punjab is set to receive Rs32 billion and Khyber-Pakhtunkhwa (K-P) Rs28 billion from the programme. The 16MW Naltar Hydropower Project was approved at Rs10.6 billion. A Rs17 billion flood management project in Balochistan's Kachhi Plains was also approved. Punjab's Tourism for Economic Growth project was cleared at Rs12.2 billion. The Higher Education Development programme was approved for Rs21.2 billion. The Prime Minister's Pakistan Fund for Education was given Rs14 billion, while Punjab CM Maryam Nawaz's Laptop Programme got Rs27 billion. A road dualisation project from Sargodha to Mianwali via Khushab was approved at Rs12 billion, with the federal government covering 25% of the cost, in breach of IMF conditions. Lahore's sewerage system from Larechs Colony to Gulshan-e-Ravi was approved at Rs49.3 billion. A separate Rs12 billion project was cleared for a controlled access corridor between Niazi and Babu Sabu Interchanges, to be fully funded by Punjab. Balochistan's Water Security and Productivity Improvement Project was approved at Rs10 billion. A road from Gujranwala to the M-2 Interchange via Hafizabad was approved for Rs13.2 billion. The federal government will contribute Rs3.7 billion or 28.2%, in violation of the National Fiscal Pact. Rehabilitation and upgrading of the Jhaljao-Bela Road was approved for Rs16.2 billion. A revised Rs41 billion project under the Pakistan Raises Revenue Programme was also approved. Funded by a $400 million World Bank loan in 2019, it aims to boost revenue collection and expand the tax base but remains incomplete after six years. The road from Sanghar to the National Highway will be reconstructed for Rs37 billion, equally funded by the federal and Sindh governments. The Rohri-Guddu Barrage road upgrade, covering M-5 Interchange Sadiqabad to Khanpur Mahar, Mirpur Mathelo and Mureed Shah, was approved at Rs18 billion. The Sindh Coastal Highway project was cleared at a revised cost of Rs37.7 billion, with the federal government contributing Rs27 billion and Sindh Rs10.8 billion via its Annual Development Programme. The dualisation of Mehran Highway from Nawabshah to Ranipur (135km) was approved at a revised cost of Rs41 billion. Lastly, the reconstruction of the National Highway N-5 under the Resilient Recovery and Reconstruction Framework was approved at Rs165 billion ($588 million). The Asian Infrastructure Investment Bank (AIIB) is providing $500 million, which is 85% of the total cost.
Express Tribune
13-07-2025
- Express Tribune
K-P spending plan long on promises
The Khyber-Pakhtunkhwa government has presented a Rs363 billion education budget for the upcoming fiscal year, marking an 11 per cent increase from last year. Critics, however, have argued that the budget is high on claims and low on credibility. Despite a barrage of promises, from school renovations to new colleges and expanded health coverage, opposition parties have dismissed the budget as a "paper exercise" detached from the dire on-ground realities of a province grappling with economic mismanagement, institutional decay, and widespread corruption. The government's education plan boasts allocations for classroom repairs in 32,500 schools, provision of teaching materials, and extracurricular activities for over 5.9 million students. It also includes Rs1.59 billion for hiring female teachers in girls' community schools, Rs8.54 billion for free textbooks, and Rs855 million for restoring ten historic schools. Additionally, it promises to enroll half of the province's out-of-school children and address teacher shortages through a Rs1 billion allocation to parent-teacher councils. Higher education spending has been increased to Rs50 billion, while Rs2.77 billion has been set aside to convert public colleges into centers of applied sciences and Rs3.5 billion for five new colleges. The budget for public universities has jumped from Rs3 billion to Rs10 billion, alongside a Rs1.24 billion top-up in the scholarship endowment fund. In the health sector, the government has raised the Sehat Card Plus budget from Rs28 billion to Rs35 billion, and earmarked Rs6 billion for extending health coverage to the merged districts. New projects include neonatal care centers in five districts, satellite cardiology units in Mardan and Bannu, and a nursing college in Chitral. Funds have also been set aside for health facility upgrades in Orakzai and Kurram. However, the opposition has branded the budget a farce, with PPP MPA Ahmed Karim Kundi calling it "laughable" and accusing the government of manipulating figures to create the illusion of a Rs157 billion surplus. "They present a Rs416 billion budget but cannot even spend Rs100 billion effectively. The Sehat Card program, touted as a flagship initiative, disproportionately benefits the rich, with 80 per cent of users coming from wealthier segments of society. Public hospitals are in shambles, no new basic health units have been built, and health indicators are declining," he said. Critics also pointed to a crumbling education sector. Over 500,000 children remain out of school, and while the government announces new projects each year, implementation remains minimal. Universities face a crippling financial crisis, with the government reportedly selling off institutional land to manage expenses. Opposition lawmaker from the Awami National Party Nisar Baz accused the PTI-led provincial government of reducing education and health to mere slogans, while failing to build even a single major hospital or university in the last 15 years. "Security conditions in some districts are so poor that teachers can't even reach their schools," claimed an MPA from the ANP. Federation of All Pakistan Universities Academic Staff Association K-P Chapter President Professor Dr Dilnawaz Khan revealed that they were demanding Rs50 billion fund from the provincial government. "Only Rs10 billion has been announced for universities, which is insufficient. The federal government will allocate Rs65 billion for higher education, even though after the 18th amendment it is the responsibility of the provincial government. Universities in K-P are facing a financial loss of Rs20 billion," said Dr Khan. Leader of the opposition, Dr Ibad Khan was more scathing in his assessment, claiming that the budget reflected a governance model built on corruption. "The only thing this government is serious about is looting public funds. From the Chief Minister to his ministers, corruption runs deep," lambasted Dr Ibad, while accusing the ruling party of betraying public trust by using promises of better education and health to win votes while delivering only stagnation and administrative failure.
Express Tribune
11-07-2025
- Express Tribune
Leaking DISCOs
Listen to article As Pakistan begins to inch toward a long-overdue path of economic recovery, the government has been eager to highlight improvements across sectors — none more so than the power sector, where Federal Minister for Energy Awais Ahmad Khan Leghari claims a "success" in reducing electricity theft and losses by Rs192 billion. But in truth, this is a damning reminder of how deep-rooted dysfunction continues to plague DISCOs, and how these entities remain one of the biggest drags on the country's economic revival. The Rs591 billion loss inflicted by government-run DISCOs in FY2023-24 is a symptom of institutional rot. While the minister points to a reduction to Rs399 billion as a sign of progress, let us not forget that this remaining burden is still being shouldered by taxpayers and honest bill-payers. The breakdown of the losses is as follows: Rs315 billion lost due to unpaid bills and Rs276 billion attributed to electricity theft. Even with improved recovery rates and marginal savings, the fact remains that nearly Rs400 billion continues to bleed from the system every year. This is a massive leakage in an economy. Power theft, non-recovery and technical inefficiencies all stem from the same root cause: a lack of governance and accountability. For years, DISCOs have been run on the basis of political patronage and outdated systems that allow theft and corruption to flourish unchecked. While reforms and merit-based board appointments are welcome, they are not a silver bullet. Without independent audits and zero-tolerance enforcement on corruption, these reforms will remain cosmetic. The bar should not be so low that reducing theft is considered a success. DISCOs must be transformed from politically compromised entities into professional, performance-driven utilities. As Pakistan enters a new fiscal year with hopes of economic renewal, one message must be clear that recovery will not be possible without root-and-branch reform of the power sector.
