K-P Presents Rs2.17 Trillion Budget with Rs48 Billion Deficit
Khyber-Pakhtunkhwa Chief Minister Sohail Afridi presented a Rs2.17 trillion budget for fiscal year 2027, estimating a fiscal deficit of Rs48 billion. Afridi made a controversial claim that the province would withhold grants to the federal government until authorities restore meetings with incarcerated PTI founder Imran Khan. He also asserted that the deficit would be covered using provincial savings rather than new borrowing, a claim that has raised eyebrows among economic analysts.
The budget includes a 7% salary and pension hike for employees and a sharp increase in police spending amid a surge in militant violence. However, many ambitious goals remain unfunded, raising questions about the government's ability to cover expansive commitments without federal intervention.
Balochistan Unveils Rs1.089 Trillion Budget with Ambitious Revenue Target
Balochistan Finance Minister Mir Shoaib Nosherwani presented a Rs1.089 trillion budget, featuring a development outlay of Rs206 billion. The province announced 5,000 new jobs and a 7% salary and pension hike. Healthcare received Rs96 billion, with Rs7.7 billion allocated for the Balochistan Health Card and related initiatives.
The province set a revenue target of Rs170 billion, which analysts consider ambitious given its historically low revenue generation. According to officials, provincial power brokers, who are also the wealthiest individuals in the region, continue to engage in self-dealing, hampering revenue collection.
Common Threads and Challenges
Both budgets share common themes: job creation, salary increases, and development spending, but also dependence on external funding and willingness to run deficits. The K-P government's defiant posture toward Islamabad adds political uncertainty, while Balochistan's sprawling initiatives risk overreach without robust institutional capacity.
For citizens in both provinces, the ultimate test will be the quality of execution rather than the size of the budget.
