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KP Budget 2026-27: No funds for Centre sans Imran meeting, says Afridi
๐Ÿ‡ต๐Ÿ‡ฐ Pakistan /Economy & Trade

KP Budget 2026-27: No funds for Centre sans Imran meeting, says Afridi

From Dawn · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • Khyber Pakhtunkhwa presented a Rs2.17 trillion budget for fiscal year 2026-27, projecting a Rs48bn deficit.
  • The provincial government stated it would not provide funds to the federal government without authorization from PTI founder Imran Khan.
  • The budget includes a 7% increase in salaries and pensions and an exemption for properties up to 5 marlas from property tax.

Khyber Pakhtunkhwa Chief Minister Muhammad Sohail Afridi presented a Rs2.17 trillion budget for the fiscal year 2026-27, announcing a projected deficit of Rs48 billion. A key point of contention was the provincial government's stance on providing funds to the federal government. Afridi stated that any decision on additional funds would require authorization from PTI founder Imran Khan, emphasizing that the provincial government had made this clear during a National Economic Council meeting.

During the NEC meeting, the chief minister highlighted that while other political parties were allowed meetings with their leaders, the KP government was denied access to Imran Khan. He described Khan as being held in isolation and solitary confinement, with all meetings, including those with his wife and family, banned. The PTI leadership has demanded the restoration of Khan's meetings with family and lawyers, access to party leadership, and a weekly phone call with his sons. Afridi warned that no draft would be signed until they met with Khan.

We had made it clear during the National Economic Council (NEC) meeting that the decision regarding provision of additional funds to the federal government will be made by PTI founder Imran Khan, the last authority to approve it.

โ€” Muhammad Sohail AfridiKhyber Pakhtunkhwa Chief Minister explaining the provincial government's stance on releasing funds to the federal government.

Regarding the National Finance Commission (NFC) award, Afridi mentioned the prime minister's hint at completing the process within six months. However, he added that if the NFC award was not announced within that period, the share of the merged areas would be included in KPโ€™s share under the 7th NFC Award. He noted that no progress had been made on the 11th NFC, which he said was increasing grievances in the merged areas.

The budget projects total revenues at Rs2.12 trillion against total expenditures of Rs2.17 trillion. Federal transfers are expected to account for Rs1.5 trillion of the revenue. The province's own tax and non-tax receipts are projected to increase by approximately 41.3% to Rs182.4 billion. The budget includes no new taxes but raises salaries and pensions by 7% and provides property tax exemption for properties up to 5 marlas.

We will not sign any draft until we meet Mr Khan.

โ€” Muhammad Sohail AfridiKhyber Pakhtunkhwa Chief Minister warning about the conditions for approving financial drafts.
DistantNews Editorial

Originally published by Dawn in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.