Chief Minister of Khyber Pakhtunkhwa (KP), Ali Amin Gandapur, announced on Tuesday that the provincial government would present a tax-free budget and would not impose any new taxes during FY 2025-26.Speaking about the province’s financial discipline, KP CM Gandapur stated in a statement here that KP has not taken any new loans so far. However, a significant Rs 150 billion has been allocated for loan repayments, underlining the government’s commitment to managing existing debt responsibly. 

Highlighting development plans, the CM said the province is launching mega projects, with work already underway on the Peshawar-Dera Ismail Khan Motorway, a key infrastructure initiative aimed at improving regional connectivity. In a bid to empower youth, KP CM revealed that the government plans to further expand interest-free loan schemes, enabling young people to become financially self-reliant. 

He also declared an “education emergency” across the province, emphasizing that improving educational standards is a top priority for his administration. The upcoming budget reflects the provincial government’s focus on fiscal responsibility, public welfare, and long-term development. Finance Minister Muhammad Aurangzeb will present budget 2025-26 with total outlay of Rs17.8 trillion in the National Assembly on Tuesday.

Federal government has set GDP growth target at 4.2 per cent in the budget 2025-26, ARY News reported on Tuesday, citing budget document. According to details, the current account deficit for the next fiscal year is projected at 2.1 billion dollars, which equals -0.5% of GDP. The revised National Development Plan allocates over Rs4,223 billion for various development initiatives across the country. Of this amount, Rs2,869 billion is earmarked for the PSDP, while federal ministries and divisions will receive over Rs682 billion for their respective development projects.

Credit: Independent News Pakistan (INP)