The Khyber Pakhtunkhwa (KP) government has finalised a development budget of Rs177.52 billion for the upcoming fiscal year to fund 50 major projects in collaboration with international donor agencies.
According to documents from the KP Department of Planning and Development, the World Bank and the Asian Development Bank will be the leading contributors.
This marks a significant increase from the current fiscal year’s allocation of Rs112.14 billion in foreign-funded development projects, reflecting a growing focus on infrastructure, energy, health, and education.
Thd key proposed allocations include, KP Road Accessibility Project – Rs28.10 billion, KP Rural Roads Development Project – Rs22.40 billion, KP Cities Improvement Project – Rs18.20 billion, Balakot Hydropower Project – Rs11.20 billion, Integrated Tourism Development – Rs8.40 billion, Irrigation and Drainage Rehabilitation – Rs7 billion, Madyan Hydropower Project – Rs7 billion, National Health Support Program – Rs6.44 billion, Human Capital Investment (Health) – Rs5.88 billion, Human Capital Investment (Education) – Rs5.04 billion and Non-DHQ Hospital Revamping – Rs5.60 billion.
The other notable allocations include, Gabral-Kalam Hydropower Project – Rs5.60 billion, the KP Rural Investment Program – Rs4.20 billion, the FATA Infrastructure Program – Rs3.92 billion, the Rural Economic Transformation Project – Rs3.92 billion and the Food Security Support Project – Rs3.08 billion.
The budget 2025-26 is expected to enhance infrastructure, promote sustainable energy, and uplift public services across the province.
With major backing from international development partners, the initiative would play a crucial role in the province’s long-term economic growth and stability.
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The Khyber Pakhtunkhwa government is set to present a significantly expanded Annual Development Programme (ADP) for the fiscal year 2025–26, with a proposed budget of Rs528 billion. This marks an increase of Rs114 billion from the previous fiscal year and signals a strong governmental push to accelerate development across key sectors in the province.
The development budget in the last fiscal year stood at Rs414 billion. According to officials in the finance department, the proposed increase is aimed at widening the scope of development initiatives and addressing long-standing deficiencies in infrastructure, public services, and governance, particularly in rural and underdeveloped areas.
Insiders familiar with the budget planning process reveal that major funds will be allocated for public works, health, education, local governance, and the newly merged tribal districts. The aim is to ensure not only economic growth but also to promote equitable development across all regions of the province. These proposed allocations are currently under review by the Chief Minister and the Department of Planning and Development.
The government is expected to finalize the plan and present it before the provincial cabinet. Once approved at that level, it will be tabled in the Khyber Pakhtunkhwa Assembly for discussion and formal approval
This increase in development funding comes at a critical time for the province, which continues to face serious fiscal challenges, including delayed transfers of federal funds, economic strain due to security expenditures, and rising demand for public services. Officials believe that expanding the development budget will play a key role in addressing these pressures and will allow the government to initiate new projects while completing those that have stalled due to resource constraints.
