KP budget draws criticism in assembly over unfinished projects and low allocations

PESHAWAR: Members of the Khyber Pakhtunkhwa Assembly criticised the provincial government during Sunday’s budget session for including fresh development schemes in the 2026-27 budget while many projects announced a year earlier remain incomplete.

Lawmakers also objected to what they described as very small allocations for a number of schemes, arguing that such funding would not allow those projects to be finished within the coming fiscal year or address public needs across the province. Several speakers also criticised the federal government, saying Khyber Pakhtunkhwa was being neglected because its voters had returned PTI to power for a third straight term.

The sitting was held under Speaker Babar Saleem Swati. During the debate, opposition leader Dr Ibadullah praised Pakistan’s role in mediation between Iran and the United States and commended the country’s political and military leadership for helping ease tensions.

Opposition questions development spending and debt

Dr Ibadullah said the budget for 2026-27 was deeply flawed and said he would support that claim with figures released by the provincial government itself. He argued that the development allocation for the new fiscal year was lower than that of 2025-26, saying Rs600 billion had been set aside for uplift schemes in 2025-26, while the next year’s outlay was about Rs524 billion.

He further said the development budget would shrink further after deducting Rs109 billion that had been committed during the National Economic Council meeting. He also said KP’s debt stood at Rs150 billion in 2013 for the entire period from 1947 to 2013, but had risen during PTI governments and reached Rs951 billion in 2026-27.

According to the opposition leader, the province needed long-term planning in tourism, energy, agriculture, and mines and minerals to generate revenue. He said more than Rs2.4 trillion was required to complete earlier schemes, yet the government had still shown more than 1,200 new schemes in the budget.

Speaking on the mines and minerals sector, he said:

“This province can pay even the country’s debt if mines and minerals sector is properly worked upon,”

Concerns from treasury and opposition benches

Former chief minister Ali Amin Khan Gandapur also criticised the budget. He said only 5 per cent of the total budget had been allocated to elementary education, higher education and information technology, 0.06 per cent to mines and minerals, 1.3 per cent to tourism, and 5.5 per cent to livestock, fisheries and water management.

He called for all political parties to work together to change the system. He also said the proposed salary increase should be raised from 7 per cent to 10 per cent and that previously launched schemes should be completed first.

ANP lawmaker Mohammad Nisar Baaz said half of the federal budget would go towards repayment of debt to the International Monetary Fund and the World Bank, while Rs3,000 billion would be spent on defence, leaving very little for public welfare in 2026-27. He said the province’s total development budget was Rs524 billion, whereas Rs2,500 billion was needed for the 2,800 new development schemes included in the budget.

The Bajaur MPA said both the federal and provincial governments had turned away from the merged districts. He added that the merged areas had been promised 3 per cent of the divisible pool, but the amount had still not been paid.

Another member, Ali Hadi, said opposition lawmakers were being ignored and described that as a violation of law.

Government defends budget, blames Centre

Law Minister Aftab Alam Afridi responded by saying the opposition leader should have focused on how the federal government was treating the province. He said the interim setup, which he described as a government of opposition parties, had exceeded its mandate, and added that the third PTI government had inherited serious difficulties and spent seven months dealing with them before overcoming the financial crisis.

Afridi said the province was moving forward without imposing any new taxes. He also said no government employees had protested against the budget despite inflation, which he blamed on the federal government.

“The province is moving ahead without imposing any new tax and for the first time, despite inflation which the federal government is responsible for, no government employee has protested against the budget,” he said.

He further said funds meant for Khyber Pakhtunkhwa had been diverted to other provinces and maintained that the federal government had no right to seek funds from the provincial government. He added that budgetary allocations were the right of the people who voted for their representatives.

The assembly session was later adjourned until 2pm on Monday.