The Khyber Pakhtunkhwa cabinet approved a Rs1.52 trillion budget proposal, including 902 developmental projects to boost education, health, employment, and the infrastructure sector across the province.
The cabinet also approved changes to the taxation system as several types of taxes have been abolished in the new budget to provide relief to the public and encourage business activity.
Government sources said the budget focuses on economic growth, social welfare, and maintaining law and order. Officials added that the 902 development schemes will create job opportunities, while tax reductions are expected to stimulate commercial activity in the province. The Khyber Pakhtunkhwa Finance Department has released the budget strategy paper for the fiscal year 2026-27, according to which the province’s gross domestic product has reached Rs 11,885 billion, while the per capita income has reached Rs 290,000 per year.
According to the budget paper, the agriculture sector is contributing 30 percent and the employment sector 32 percent to the province’s economic growth rate. An increase of 3 percent has been recorded in the service sector, 14 percent in education, and 19 percent in the labour sector, which are important signs of the Khyber Pakhtunkhwa financial development.
To ensure food security, the provincial government has launched a special program of Rs 12.1 billion. Regarding fiscal discipline, the paper said that the province has maintained strong fiscal growth by achieving a surplus target of Rs 157 billion, while Improvement has also been seen in the social sector.
The literacy rate has reached 56.7 percent. In the health sector, Rs41 billion was spent on the Sehat Card program, which provided free medical treatment to 32 million people. In view of the law and order situation, the government has allocated Rs164.520 billion for the police to improve the security of people’s lives and property. The Finance Department says that positive results are being seen from investments in agriculture, employment, and social sectors, and the province is on the path of sustainable development.
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