PESHAWAR: The Khyber-Pakhtunkhwa government is preparing a relief-oriented and youth-focused budget for the fiscal year 2026-27, with no new taxes and a series of welfare and development initiatives aimed at supporting young people, farmers, small businesses, and low-income groups.
Advisor to the Chief Minister on Finance, Muzammil Aslam, said the provincial government has decided not to introduce any new taxes or increase existing tax rates in the upcoming budget. Instead, certain taxes may be reduced to provide financial relief to citizens.
Speaking in an interview, Aslam said the budget has been designed to promote youth empowerment and economic growth. Several new schemes are being planned to help young people secure employment opportunities abroad, including financial assistance for visa and travel expenses.
The government also plans to launch a student support program offering easy loans to cover admission fees at public sector universities. In addition, interest-free and low-cost financing schemes will be introduced to facilitate the purchase of electric two-wheelers and three-wheelers.
Approximately Rs50 billion has been allocated for youth-focused loan programs under the proposed budget.
The provincial government is also preparing dedicated initiatives for farmers and small business owners to encourage economic activity and improve livelihoods across the province.
A major increase in development spending is expected, with the government planning to allocate more than Rs215 billion for development projects during FY2026-27. Officials say the province intends to exceed the allocated development budget, continuing a trend seen in recent years.
According to the finance advisor, Khyber-Pakhtunkhwa has consistently surpassed its development spending targets. In the first year of the current administration, Rs120 billion was allocated for development projects, while actual spending reached Rs153 billion. Similarly, against an allocation of Rs195 billion last year, development spending is expected to reach Rs220 billion in the current fiscal year.
On government salaries, the province plans to align pay scales with those announced by the federal government. The salary budget is expected to rise from Rs70 billion to around Rs75 billion, although the final decision will be made after the announcement of the federal budget.
Aslam said improved financial management has strengthened the province’s fiscal position and enabled the government to pursue ambitious development goals while maintaining financial stability.
The government has also announced plans for a Rs200 billion development package for Peshawar. Among the key infrastructure projects is the Peshawar-Charsadda railway track, which aims to reduce traffic congestion and improve regional connectivity.
The Khyber-Pakhtunkhwa government intends to present a surplus budget for FY2026-27 while avoiding any additional tax burden on the public and expanding support for youth, infrastructure, and economic development.
