The Khyber Pakhtunkhwa government on Friday unveiled a Rs2.12 trillion surplus budget for the fiscal year 2025–26.

The budget includes a development programme worth Rs547 billion and a proposed 10% increase in government salaries along with a 7% raise in pensions.

The minimum monthly wage has been raised from Rs36,000 to Rs40,000.

In his speech, Gandapur criticised the federal government for “tax overload” and accused it of conspiring against the Pakistan Tehreek-e-Insaf (PTI).

CM Gandapur slams governor, federal govt

At the outset, the assembly session was disrupted by a power outage.

Addressing lawmakers, CM Gandapur said the session had to be convened through a requisition because the KP governor did not summon the assembly.

“Our mandate has been stolen. There’s still an ongoing conspiracy against us,” he claimed.

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He described the federal budget as “deceptive” and declared that his government would not assist in federal tax collection.

He further alleged that he was not allowed to meet the PTI founder in jail, who, he said, should have been consulted on the provincial budget.

The budget proposes Rs1,415 billion for salaries and recurring expenses, with Rs1,255 billion allocated for settled districts and Rs160 billion for tribal districts.

A disparity allowance for employees not receiving executive allowances has been increased from 15% to 20%.

Key tax reliefs include:

• Reduction of stamp duty on residential/commercial property transfers from 2% to 1%.

• Exemption on taxes for properties under 4.9 marlas.

• Reduction of hotel bed tax from 10% to 7%.

• Withdrawal of professional tax on monthly incomes of Rs36,000.

• Waivers on registration and token tax for electric vehicles.

The budget documents reveal a projected shortfall of Rs267 billion under the NFC Award.

Additionally, the federal government owes KP Rs71 billion in net hydel profits and Rs58 billion in oil and gas revenue.

Foreign aid receipts are estimated at Rs177 billion, while the province’s own revenue target has been set at Rs129 billion.

Opposition stages protest

The budget session was marred by disruptions as opposition members staged a protest in front of the speaker’s dais, raising slogans and holding placards.

CM Gandapur attempted to pacify the assembly members by assuring them that opposition amendments would be considered.