KP unveils Rs2.1trn surplus budget
PESHAWAR: The provincial government of Khyber Pakhtunkhwa Friday unveiled a Rs 2119 billion surplus budget for the fiscal year 2025-26. No new tax has been introduced while salaries of government employees and pension of the retired employees are increased by 10% and 7%, respectively.
The budget was presented by the Provincial Minister for Finance Aftab Alam Afridi. Chief Minister Ali Amin Khan Gandapur was also present in the house.
Current expenditure for settled districts has been estimated at Rs. 1255 billion besides Rs.160 billion for the merged districts of the erstwhile Fata.
Giving the break up, the finance minister said that in head of the federal receipts, the province will receive an estimated amount of Rs.1147.761 billion: Rs.137.912 billion in head of 1% of divisible pool on war against terrorism, a Rs.57.115 billion in head of straight transfer in royalty and surcharge on oil and gas, Rs.58.151 billion in head of windfall levy on oil, Rs.34.580 billion in head of net hydel profit and another receipts of Rs71.410 billion in head of arrears in head of net profit.
He said the provincial own resources posted 38% increase due to expansion of tax net without the imposition of any new tax. In head of tax receipts, the province will collect an estimated amount of Rs.83.5 billion, and Rs.45.5 billion in head of non-tax receipts. Similarly, in head of capital receipts, the province will generate an amount of Rs.0.25 billion, and Rs.10 billion in head of other ways and means.
The minister told the house about receipts from federal government in head of the current budget grant for merged district and an additional demand for current budget of Rs.63 billion, Rs.39.600 billion in head of annual development program, Rs.50 billion for accelerated implementation Programme (AIP), Rs.42.740 billion in head of 3% share from other provinces and Rs.17 billion for the temporarily displaced persons (TDPs).
He said that Rs3.293 billion would be received from PSDP, Rs1506.92 billion from the federal receipts, Rs129 billion from provincial owns receipts, Rs10.25 from other receipts, Rs291.340mn from merged districts receipts and Rs177.188 from federal projects assistance.
He said that no new tax has been imposed in the budget; rather tax net base has been enhanced with Rs83.5 billion tax receipts and Rs45.5 billion non tax receipts. He said the government has estimated Rs1255 billion current expenditures for settled areas including Rs288.514 billion for provincial salaries, Rs288.609 billion for tehsil salaries. He said that the government has allocated Rs547 billion for developmental expenditure, including Rs 195 billion for PADP, Rs39 billion for district ADP, Rs39.6 billion for merged tribal districts' ADP.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
15 hours ago
- Express Tribune
Rs20bn development push for Hyderabad misses the basics
The Sindh government is going to inject more than Rs20 billion on an array of development schemes in Hyderabad in fiscal 2025-26. However, some of the most needed development projects pertaining to water filtration plants, sewage treatment plants and public parks do not find a mention in the Public Sector Development Programme (PSDP). The pollution of the Indus River and its canals in Hyderabad will continue unabated for the years to come because the government appears least bothered in treating municipal, commercial and industrial sewage, released in the waterways. Besides, the city's water needs have increased manifold due to the population surge but only small capacity water filtration facilities of around six million gallons per day are being built instead of a central plant with a higher capacity. The toxic industrial wastewater from Hyderabad SITE area is discharged in Phuleli canal, which is a drinking and irrigation water source for Hyderabad, Tando Muhammad Khan and Badin districts. The zone's industrialists are being assured for some years that the provincial government will build for them a combined effluent treatment plant. The budget, however, has kept the status of CEPT for Hyderabad SITE as unapproved with an outlay of Rs100 million and zero allocations for this year. Moreover, there are also reflections of schemes, which have witnessed years-long delay in release of the earmarked funds, consequently delaying the projects' completion and ending up in increasing the costs. There are some other projects which although appear less significant but have secured massive funds. Two years ago in 2023 the government had approved installation of three traffic signals in Hyderabad with the expenditure of Rs233.486 million. A paltry sum of Rs11.674 million was released in the outgoing financial year while the next year Rs30 million more will be provided, totalling 18% of the total allocation. This abundantly shows how the authorities waste years to complete some of the vital projects for the city, which ought to be rounded off in a few months in view of the rampant traffic congestion issues. The phase III of the greater Qasimabad drainage scheme was kicked off in 2017 with a revised budget of Rs3.1 billion. That project is likely to be completed by June 2026 with the release of the remaining total amount of Rs230 million. Another project approved in 2017 concerns construction of road, retaining wall, drain and prestressed bridge on the right side of old Phuleli canal, stretching from Preetabad to Darya Khan pumping station. A revised sum of Rs4.923 billion is to be spent on the project whose completion status will be 85% in June 2026, even after eight years. The provincial government had approved the construction of a sanitary landfill site for Hyderabad in February 2017. Out of the total estimated cost of Rs461.9 million, it will get only Rs25 million in 2025-26. The construction of 9.66-kilometer long Tando Jam bypass road on Hyderabad-Mirpurkhas road was also approved in May 2017, with over Rs2 billion outlay. With Rs98.5 million fund allocation for next fiscal, 90% of the total budget for the bypass road will be released by June 2026. The authorities have also planned to recondition and construct two of some most important roads in Hyderabad. One of them stretches from Shahbaz Flyover on Thandi Sarak to Latifabad Unit 7 railway underpass and the other from the grid station in Qasimabad to former National Highway. However, shockingly though, a colossal sum of Rs1.038 billion has been proposed in the budget for the two roads whose combined length is around 2 kms. The government will release Rs519.3 million for the project in the upcoming budget year. The ongoing widening and reconditioning of Autobahn, the longest commercial road in the city, has already taken too long to utter dismay of the traders and the commuters. The Rs3.2 billion project, which also includes construction of a new drainage system under the road, will receive 94% of the total sanctioned funds. The scheme was approved in October 2022, and it was revised on May 29, 2023. In the higher education sector, the Government College University will receive Rs119.7 million to complete the construction of boundary wall at the total cost of Rs200 million while for varsity's upgrade Rs17.8 million will be given.
Business Recorder
21 hours ago
- Business Recorder
ABC lauds govt for presenting ‘forward-looking' budget
KARACHI: The American Business Council of Pakistan (ABC) appreciates the Government's efforts in presenting a forward-looking Federal Budget 2025-26, which includes encouraging steps to support industrial growth, streamline tariffs, promote digital enforcement, and foster an export-led economy. Measures such as the rationalization of customs duties, removal of certain regulatory barriers, and enhanced digitalization to curb tax evasion reflect the Government's commitment to facilitating business and improving economic efficiency. ABC is also grateful to the Government of Pakistan for accommodating some of our proposals in the Budget 2025-26, which we believe will contribute to further stability in the economy and reinforce investor confidence. While these initiatives are promising, ABC believes that certain aspects of the budget may merit further review to fully unlock Pakistan's investment potential. The increase in withholding taxes on services, the introduction of new levies on digital transactions, and the phased withdrawal of incentives for renewable energy could create unintended cost pressures for businesses, particularly in emerging and sustainability-focused sectors. Additionally, the proposed levy of Rs. 2.5 per litre on petrol and diesel will likely place an additional cost burden on both businesses and consumers, potentially fuelling inflation and increasing operational expenses. Furthermore, while we acknowledge the tax relief extended to the salaried class, we feel that this relief is still limited and should be further enhanced to genuinely ease the financial burden on the working population. We also respectfully suggest that the reduction in super tax should be more substantial and applied across the corporate sector, rather than being restricted to businesses within a specific turnover range. Broadening this relief would better support Pakistan's ambition to encourage investment and growth across industries. ABC remains committed to working alongside the Government of Pakistan to support policies that drive sustainable, inclusive economic development and foster a competitive business environment. Copyright Business Recorder, 2025
Business Recorder
21 hours ago
- Business Recorder
About 200 bales of new crop sold at Rs 17,000 per maund
LAHORE: The local cotton market on Saturday remained steady and the trading volume remained low. Cotton Analyst Naseem Usman told Business Recorder told that the rate of new cotton in Sindh is in between Rs 16,200 to Rs 16,500 per maund and the rate of cotton in Punjab is in between Rs 16,500 to Rs 17,000 per maund. 200 bales of Mir Pur Khas were sold at Rs 17,000 per maund. The Spot Rate remained unchanged at Rs 16,200 per maund. Polyester Fiber was available at Rs 333 per kg. Copyright Business Recorder, 2025
