Khyber Pakhtunkhwa Finance Adviser Muzammil Aslam has said that the new provincial budget has set development and financial priorities keeping in mind the ground realities.

Speaking at a post-budget press conference in Peshawar on Saturday, Aslam said that provinces can perform better if the federal government improves its own performance.

Aslam noted that last year the province faced immense economic pressure as it received Rs90 billion less due to shortfalls in federal tax collection.

He pointed out that KP’s share of development funds in the federal budget was less than that of Sindh and Punjab.

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Furthermore, the province never received its full share from the NFC Award and the Annual Development Programme (ADP), he added.

The adviser said that KP is expected to achieve a revenue target of Rs93 billion during the current fiscal year.

In 2024, Rs20 billion were spent on Accelerated Implementation Programme (AIP) projects in the tribal districts, while Rs47 billion in current expenditures were borne by the province itself.

Aslam revealed that KP’s annual development budget has now been increased to Rs153 billion, under which projects worth Rs419 billion have already been completed.

For the upcoming fiscal year, 810 new development schemes have been included, with a combined estimated cost exceeding Rs500 billion.

He further stated that no new loans are being acquired in the new fiscal year. However, borrowing may be considered for launching mega projects.

The government has allocated Rs150 billion for debt servicing, which is currently yielding a daily return of Rs60 million.

The province expects to generate Rs17 to 18 billion in income from this debt repayment fund next year.

According to Aslam, the federal government will, for the first time, fully pay KP’s share of Rs70 billion in the next fiscal year.

Additionally, the province is receiving Rs3 billion monthly from the federal government in hydropower payment.

He also highlighted that government employees in KP receive around 30 different allowances.

A 30% disparity allowance has been allocated for employees outside the Secretariat.

The salaries of KP police have been aligned with those of the Punjab police, with an additional 10% increase announced.

Muzammil Aslam reaffirmed that the KP government’s priorities remain focused on fiscal discipline, public welfare, and the uplift of underdeveloped areas.