KP Govt Unveils Tax-Free Budget for 2025–26, Focuses on Development and Youth Empowerment

Chief Minister Khyber Pakhtunkhwa, Ali Amin Gandapur, has declared that the provincial budget for fiscal year 2025–26 will be tax-free, assuring citizens that no new taxes will be imposed. The announcement was made during a press conference ahead of the budget’s formal presentation scheduled for June 13.

Gandapur stated that the budget preparation was done in consultation with Pakistan Tehreek-e-Insaf (PTI) founder and former Prime Minister Imran Khan. He emphasized that no new loans were taken during the current fiscal year and that Rs150 billion has been allocated for debt repayment.

In a bid to spur economic development, the government has planned a 40% increase in the development budget, with over 500 new projects, including major infrastructure ventures like the Dera Motorway. The provincial government also plans to expand interest-free loan programs to support youth entrepreneurship.

Further, Gandapur announced an “educational emergency” across KP, aiming to enhance the quality and accessibility of education for all.

The Finance Department stated that the budget will reflect a Rs200 billion surplus — an indication of improved fiscal discipline and planning.