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PESHAWAR: The Khyber Pakhtunkhwa government is set to present a tax-free budget of more than Rs. 2.15 trillion for fiscal year 2026-27 in the provincial assembly today.
The budget session is scheduled for 2:00pm on Friday, June 19, 2026, where the provincial government will table its annual financial plan along with supplementary budget documents for the outgoing fiscal year.
According to budget estimates, the province is expected to avoid new taxes while proposing relief measures for households, public-sector employees and selected taxpayers. Government employees are expected to receive a 7% salary increase, along with an increase in conveyance allowance.
The Annual Development Programme has been pitched at more than Rs. 235 billion, while the province’s own-source revenue target has been set at Rs. 182 billion.
| Budget item | Expected detail |
|---|---|
| Total outlay | Over Rs. 2.15 trillion |
| Annual Development Programme | Over Rs. 235 billion |
| Own-source revenue target | Rs. 182 billion |
| Govt employee salary raise | 7% |
| New taxes | None expected |
Officials say the proposed budget has been framed as a pro-growth and relief-oriented financial plan. The provincial government is also expected to reduce the infrastructure development cess from 2% to 0.75%.
The tax on five-marla houses is also likely to be reduced, a move expected to benefit more than 200,000 households across the province. The budget may also include loan schemes for students and Pakistanis planning to go abroad.
The provincial estimates are reportedly based on the Federal Board of Revenue’s tax target of Rs. 15.2 trillion, making federal transfers and grants a key part of the province’s fiscal planning for the new financial year.
Ahead of the session, PTI Chairman Barrister Gohar Ali Khan said party lawmakers would attend the assembly proceedings and support the provincial government in the budget process. KP Governor Faisal Karim Kundi also said there had been no procedural delay in the presentation of the budget.
Further details on allocations, relief measures and department-wise spending will become clear after the finance minister presents the budget speech in the Khyber Pakhtunkhwa Assembly.
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