Qaumi Watan Party (QWP) provincial Chairman Sikandar Hayat Sherpao on Monday declared that the Khyber Pakhtunkhwa provincial budget for fiscal year 2026-27 could not be termed a tax-free budget, as the people were subjected to a myriad of indirect taxes. Addressing a news conference at Watan Kor, the QWP secretariat in Peshawar, he stated that the Pakistan Tehreek-e-Insaf (PTI) had been ruling Khyber Pakhtunkhwa for the last 13 years but failed to provide any relief to the masses in the face of skyrocketing inflation.
Sherpao Criticizes PTI's 13-Year Rule
Sikandar Sherpao said that the have-nots were unable to feed their children, let alone provide them health and education facilities. He also came down hard on the federal government, asserting that the centre should lower its expenses and generate its own resources instead of asking the provinces to provide funds.
To a question about PTI’s internal differences, Sherpao remarked that it was none of their business, as the people wanted the government to provide them relief. Regarding the non-provision of funds to the merged tribal districts, he said that it was the responsibility of the Centre to take care of the needs of those districts. He accused the federal government of not providing the promised funds to the ex-FATA.
Law and Order Deterioration in Southern KP
The QWP leader criticized the PTI government for the worsening law and order situation in the province, particularly in the southern belt, warning that the situation would spiral out of control if timely steps were not taken. He added that the PTI was interested only in securing the release of its founder and had placed key issues on the backburner. Sherpao also stated that the PTI government had failed to ensure security, eradicate poverty, and create jobs for the youth.
KP Budget Relies 80% on Federal Transfers
Sherpao further noted that Khyber Pakhtunkhwa’s budget relied 80 percent on federal transfers, making the province the most affected by the federal budget. He pointed out that the total outlay of the federal budget stood at Rs18.8 trillion, out of which Rs8 trillion were meant for debt-servicing. “This means nearly half of the federal budget is spent on paying loans instead of development and job creation. The federal government talks about introducing structural reforms but has done nothing to put its own house in order and has argued that the provinces are getting more funds,” he said.
“The federal government continues to borrow and spend without making structural reforms. So, the people of Khyber Pakhtunkhwa are also suffering due to its fiscal mismanagement,” he remarked. Drawing a comparison, Sherpao said that Rs1 trillion was allocated for the Public Sector Development Programme (PSDP) while debt-servicing would consume Rs8 trillion of the federal budget. “As debt servicing rises, development will be sacrificed every year,” he maintained.
Provincial Deficit Understated, Says QWP
Shedding light on the provincial budget, Sherpao said that the deficit of Rs48 billion was understated. He added that the budget appeared to be a collection of expenditures rather than a development strategy. He also demanded that the federal government grant Khyber Pakhtunkhwa its due constitutional rights, announce a new National Finance Commission (NFC) Award, pay the arrears of net hydel profit, and ensure the allocation of 3 percent of the NFC share to the merged tribal districts. He further demanded that the federal government implement the 18th Amendment and grant Khyber Pakhtunkhwa the excise duty on oil and gas. He also said that the duration of electricity and gas load-shedding should be reduced.
