KP achieves Rs129 billion revenue target, reduces taxes in budget: Muzammil Aslam

PESHAWAR, (APP - UrduPoint / Pakistan Point News - 20th Jun, 2026) Khyber Pakhtunkhwa Finance Adviser Muzammil Aslam and Information Minister Shafi Jan on Friday highlighted the key features of the provincial budget 2026-27 and addressed financial matters concerning the Federal government during a post-budget press conference.

Muzammil Aslam said the provincial budget, titled "Khushhal Pakhtunkhwa" (Prosperous Khyber Pakhtunkhwa), has been estimated at over Rs2.1 trillion. He said the province successfully achieved its revenue target of Rs129 billion during the outgoing fiscal year.

He announced that taxes had been reduced in the new budget, including a cut in the tax on online hotel bookings from 15 percent to 5 percent, aimed at encouraging economic activity and easing the burden on citizens.

Highlighting the government's priorities, Aslam said 55 percent of the total budget has been allocated to education, health and the home department, while 58 percent will be spent on salaries and pensions. The government has earmarked Rs50 billion for the health card programme, Rs15 billion for Ehsas beneficiaries and Rs14 billion for police equipment procurement.

Among the major new initiatives announced in the budget are free public Wi-Fi in Peshawar at a cost of Rs500 million, E-bike and E-rickshaw schemes, interest-free loans for students and overseas workers, the Ehsaas kisan card, an endowment fund for minorities, female and orphan education card, and Internship programme.

Aslam said Rs16.5 billion has been allocated for the government's good-governance roadmap, while additional funding has been set aside for public transport initiatives and police operational support.

Addressing reports regarding provincial contributions to the federal government, the finance adviser rejected claims that all four provinces would provide funds to the centre. He clarified that no such proposal was included in the agenda of the National Economic Council and that the council was not the authorised forum to make such decisions.

He said the province's surplus budget had wrongly been portrayed as a deficit budget, creating the impression that the provincial government was pursuing a confrontational approach towards the federal government.

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"We are not confronting the federal government rather, we have set our own priorities in light of the province's needs and circumstances," he said.

Aslam maintained that if the National Finance Commission (NFC) Award had been finalised on time, Khyber Pakhtunkhwa would have received an additional Rs300 billion.

Discussing the financial situation of the merged districts, he said they currently face a budget deficit of Rs121 billion. The federal government has provided Rs95 billion for operational expenditures, while actual expenditures reached Rs185 billion, compared to Rs66 billion allocated last year.

Providing details of the budget, Aslam said the total outlay for 2026-27 stands at Rs2,170 billion, up from Rs1,962 billion in 2025-26. The development budget has been increased to Rs524.3 billion.

He said the settled districts' Annual Development Programme (ADP) has been allocated Rs235 billion, reflecting a 21 percent increase, while the settled tehsil ADP stands at Rs47 billion, also showing a 21 percent increase. The ADP allocation for merged districts has been raised to Rs34.8 billion, an increase of 13 percent.

The finance adviser said ongoing initiatives in the budget include good-governance reforms, the police procurement plan, monthly operational support for police and the purchase of Bus Rapid Transit (BRT) vehicles.

Responding to a question regarding the health sector, he said Rs80 billion had been allocated for Medical Teaching Institutions (MTIs) against a demand of Rs112 billion. He added that the provincial government plans to strengthen Primary healthcare centres and District Headquarters Hospitals to reduce pressure on MTIs.

Aslam claimed that, unlike some other provinces, government employees in Khyber Pakhtunkhwa did not stage protests over the budget. He also remarked that misunderstandings within his party regarding budget decisions were being resolved.

He reiterated that the provincial government had consulted stakeholders, experts and chambers of commerce while formulating the budget and setting development priorities for the upcoming fiscal year.

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