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KP cabinet approves budget for FY2026-27

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KP cabinet approves FY2026-27 budget, allocating Rs519 billion for 2,765 development projects, with infrastructure receiving the largest share of funding.

PESHAWAR (Dunya News) – The Khyber Pakhtunkhwa government has approved its budget for fiscal year 2026-27, with a strong focus on development spending and infrastructure expansion across the province.

The budget received formal approval during a cabinet meeting chaired by Chief Minister Sohail Afridi. The province’s budget document, set to be presented today, outlines major allocations for development projects and public sector growth.

According to budget documents, 519 billion rupees have been allocated for the Annual Development Programme (ADP), covering a total of 2,765 development schemes. These include 2,070 projects in settled districts, 318 in merged districts, and 377 under the Accelerated Implementation Programme.

The documents show that the development portfolio includes 1,564 ongoing projects and 1,201 new schemes planned for the upcoming fiscal year.

Sector-wise allocations indicate that 44 percent of development funds will be directed toward infrastructure, while 19 percent has been earmarked for social sector initiatives.

Governance-related projects will receive 13 percent of the allocation, followed by 9 percent for productive sectors and 5 percent for green sector development.

Funding details reveal that 71 percent of development expenditures will be financed through provincial resources, while the remaining 29 percent will come from foreign assistance.

Under externally funded programmes, work is expected to continue on 56 projects across the province.

The budget also allocates 71 percent of ADP funds to ongoing projects and 29 percent to newly launched schemes. In addition, the annual development programme includes a throw-forward liability of 24 billion rupees.

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