Peshawar: The Finance Department of Khyber Pakhtunkhwa (KP) has completed preparations for two separate budget proposals for the fiscal year 2026-27, reflecting uncertainty over the provincial government’s final decision regarding the duration and scope of the upcoming budget.
According to official sources, the provincial finance authorities have developed both a full-year budget and a three-month interim budget to ensure administrative and financial continuity under different possible scenarios. The move comes as the provincial government has yet to issue a final directive regarding the presentation of the budget for the next financial year.
No Final Instructions from Chief Minister Yet
Government officials revealed that the Finance Department has not yet received any formal instructions from Chief Minister Sohail Afridi concerning the proposal to present a three-month budget. As a result, officials have adopted a contingency approach by preparing two alternative financial plans.
The uncertainty has prompted the department to remain ready for either option, depending on political consultations and decisions that may be taken in the coming days.
Full-Year Budget Exceeds Rs2.2 Trillion
The first proposal prepared by the Finance Department is a comprehensive budget covering the entire fiscal year 2026-27. According to sources, the total size of this budget exceeds Rs2.2 trillion, making it one of the largest provincial budgets in the history of Khyber Pakhtunkhwa.
The full-year budget is designed to support government operations, development projects, social welfare initiatives, education, healthcare, infrastructure expansion, and other public services throughout the financial year.
Officials stated that considerable emphasis has been placed on maintaining fiscal discipline while ensuring adequate funding for priority sectors critical to the province’s economic growth and public welfare.
More Than Rs500 Billion Allocated for Development
A major feature of the full-year budget is the allocation for the Annual Development Programme (ADP). Sources indicated that more than Rs500 billion has been earmarked for development projects across the province.
The development budget is expected to finance a wide range of initiatives, including:
- Road and transportation infrastructure projects
- Education sector improvements
- Healthcare facilities and services
- Water supply and sanitation schemes
- Energy and power-related projects
- Urban development programs
- Rural uplift initiatives
The substantial allocation reflects the provincial government’s intention to continue investing in infrastructure and public services despite ongoing economic challenges.
Three-Month Interim Budget Also Ready
Alongside the full-year proposal, the Finance Department has also prepared a three-month interim budget. According to officials, this alternative budget has been designed as a temporary financial arrangement that would allow government operations to continue for a limited period while broader policy decisions are finalized.
The size of the interim budget exceeds Rs300 billion, covering essential expenditures for the first quarter of the fiscal year.
Such interim budgets are generally considered when governments require additional time for political consultations, financial planning, or legislative processes before presenting a complete annual budget.
Administrative Preparedness
Officials familiar with the budget preparations said the Finance Department has ensured that both proposals are technically complete and ready for presentation whenever the provincial leadership reaches a final decision.
The dual-budget strategy is intended to prevent any disruption in government functioning and ensure that salaries, pensions, development activities, and public services continue without interruption regardless of the final budgeting approach adopted by the administration.
Political and Economic Context
The preparation of two separate budgets comes at a time when provincial governments across Pakistan are facing increasing financial pressures, including rising expenditures, inflation, debt servicing obligations, and growing demands for development spending.
Economic experts note that provincial administrations are under pressure to balance development needs with fiscal sustainability while ensuring compliance with broader national economic objectives.
For Khyber Pakhtunkhwa, budget decisions are particularly significant because of the province’s ongoing infrastructure requirements, social sector needs, and commitments to various development projects already underway.
Awaiting Final Government Decision
At present, the provincial government has not officially announced whether it will proceed with the full-year budget or opt for the three-month interim arrangement. The final decision is expected after consultations between the chief minister, cabinet members, financial advisers, and relevant stakeholders.
Until then, both budget proposals remain on the table, with the Finance Department prepared to implement whichever option receives official approval. The coming days are likely to determine the fiscal direction of Khyber Pakhtunkhwa for the new financial year and shape the province’s development priorities for the months ahead.
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