The Khyber Pakhtunkhwa government on Friday unveiled a Rs2.17 trillion budget for the fiscal year 2026-27, proposing a seven per cent increase in salaries and pensions, a rise in the minimum monthly wage to Rs45,000, and significant allocations for health, education and security sectors.

Presenting the budget in the provincial assembly, Chief Minister Sohail Afridi said the budget carried a projected deficit of Rs48 billion.

He said Rs1.64 trillion had been earmarked for current expenditures, while Rs524 billion was proposed for the Annual Development Programme (ADP).

During his address, Afridi also reiterated that the provincial government would withhold grants and refrain from approving certain financial decisions until meetings with jailed PTI founder Imran Khan were allowed.

He said even Khan’s family members were being denied access to him and maintained that future decisions on additional funds would be made after consultation with the former prime minister.

The budget session was marked by strong opposition protests, with lawmakers chanting slogans during the chief minister’s speech.

Pakistan Muslim League-Nawaz (PML-N) MPA Sobia Shahid tore a copy of the budget document as tensions flared in the house.

CM Afridi said the government had proposed a Rs5,000 increase in the minimum monthly wage, taking it to Rs45,000.

The budget also includes the merger of ad hoc relief allowances granted in 2023 and 2025 into basic pay, the introduction of a house requisition allowance for secretariat employees, a 50 per cent increase in conveyance allowance and an increase in special allowance from Rs6,000 to Rs10,000.

The chief minister said Rs35 billion had been allocated for the merged tribal districts as part of efforts to accelerate their socio-economic integration and development.

Education received the largest sectoral allocation of Rs468 billion, followed by Rs334 billion for health.

Other major allocations include Rs191 billion for law and order, Rs90 billion for local government, Rs42 billion for energy, Rs29 billion each for home affairs and agriculture, Rs28 billion for the Zakat Fund and Rs14 billion for transport.

The government proposed Rs15 billion for the Ehsaas Mustahiq Programme, Rs50 billion for the Health Card Programme, Rs2 billion for the Ehsaas Kisan Programme and Rs2 billion in interest-free loans for overseas employment seekers.

An additional Rs51 million has been earmarked for self-reliance initiatives for minority communities.

In the health sector, Rs80 billion has been proposed for Medical Teaching Institution (MTI) hospitals across the province. The budget also allocates Rs14 billion for medicines in public hospitals.

For education, the government proposed Rs8.5 billion for free textbooks and education support grants, Rs5 billion for out-of-school children, Rs3.3 billion for outsourcing underperforming schools, Rs2 billion for interest-free student loans and Rs1.7 billion for teacher recruitment.

The development programme includes Rs36 billion for the Peshawar Revival Programme, Rs7.5 billion for the Bus Rapid Transit (BRT) project, Rs4 billion for the Khushhal Hazara Programme and Rs2.5 billion for electric bikes and rickshaw schemes aimed at promoting environmentally friendly transport.

Highlighting revenue performance, Afridi said the province collected Rs102 billion during the first 10 months of the outgoing fiscal year, including Rs69.7 billion in tax revenue and Rs32.3 billion in non-tax revenue. He said the Khyber Pakhtunkhwa Revenue Authority contributed Rs43.69 billion and was on track to help the province achieve its annual revenue target of Rs129 billion.

The chief minister said the police budget had increased from Rs67 billion in 2022-23 to Rs191.39 billion in 2026-27, reflecting a 185pc increase. He said Rs14.5 billion had been allocated for police procurement, including Rs7.7 billion for modern weapons and ammunition.

The budget also proposes Rs1.81 billion for bulletproof vehicles and troop carriers, Rs1.27 billion for thermal cameras, anti-drone systems and jammers, and Rs7.9 billion for operational support to police.

For safe city projects, Rs1.78 billion has been allocated for Upper and Lower South Waziristan, Orakzai and Kurram districts, while Rs1.6 billion has been earmarked for Khyber, Mohmand and Bajaur districts.