PESHAWAR: Amid criticism by incarcerated founder of the ruling PTI, Imran Khan, the Khyber Pakhtunkhwa government on Thursday defended its Rs157 billion budgetary surplus, declaring it a “buffer for tough times.”

The provincial assembly had passed the Rs2.12 trillion budget 2025-26 around midnight on Monday, envisaging a surplus of Rs157 billion.

The midnight budget passage without Mr Imran’s nod triggered a firestorm of criticism from party leaders on social media.

On Wednesday, a post shared on the PTI founder’s official ‘X’ handle also took exception to the surplus budget.

CM’s aide insists surplus ‘buffer for tough times’

“While other provincial governments are not presenting surplus budgets, offering a surplus from Khyber Pakhtunkhwa funds serves only to benefit the illegitimate federal government. I will not allow the people of KP to be harmed under any circumstances,” the post quoted Mr Imran as telling his family members in the Adiala Jail here.

However, in a statement issued here, adviser to the chief minister on finance Muzzammil Aslam said that the surplus amount belonged to the provincial government and remained with the provincial government, and it was the province’s prerogative to “keep the surplus as a buffer for tough times, for major future projects, or for provincial debt.”

Mr Aslam said that KP had saved Rs150 billion in the current fiscal year, generating Rs60 million profits per day from it, in order to reduce the burden of debt repayment.

He said that if the Centre put pressure on the province, the “we cannot be challenged or blackmailed.”

The aide to the CM said everyone knew that the provincial government couldn’t take loans exceeding Rs31 billion because if it exceeded that limit, the federal government could declare it bankrupt and impose an economic emergency.

He said that for the last 15 months, the province had been operating far more independently than under federal pressure and that it along with PTI was in a position to present its stand more boldly.

Mr Aslam said the province had set a surplus target of Rs100 billion for the current fiscal year but the figure was going to be over Rs120 billion.

He added that Rs35 billion was spent on the health insurance programme Sehat Card, while more than 30pc was spent on the Annual Development Programme-Plus.

“We paid off old liabilities, while over Rs60 billion in bridge financing was provided for development needs of the merged tribal districts,” he said.

The adviser said that for the next financial year, the province had estimated a surplus budget of Rs157 billion, with record funds allocated for the ADP and current expenditure.

He said that a surplus budget was not guaranteed; it depended on how much tax the federal government collected and how much of it was transferred to the province.

“This year, the federal government collected less than Rs1 trillion in taxes due to which our transfers were reduced by Rs90 billion. If tax revenues decrease further, our surplus will be wiped out,” he said.

Mr Aslam expressed hope that by the end of next year, 40-50pc of the province’s total debt would be funded and that it was in line with Mr Imran’s vision to free the country from debt.

He said that those claiming that only KP was generating a budgetary surplus, while all other provinces had a deficit deficit were misled by propaganda.

“By March 2025, Punjab will have a surplus of Rs441 billion, Sindh Rs395 billion, Khyber Pakhtunkhwa Rs111 billion and Balochistan Rs105 billion,” he said.

When contacted, Mr Aslam said there was a misconception that the province had achieved surplus at the cost of lower than budgeted amount spent.

He added that a few believed surplus was bound to be surrendered to the centre, while few others thought in case of KP achieving budgetary surplus, the Centre might not release the province’s due share in the upcoming year.

The aide to the CM insisted that his statement was meant to clear that confusion.

Regarding the controversy over the passing of the budget, he said that the federal government denied Mr Imran his fundamental right to meet with the provincial government’s team to discuss the budget.

“It was the right step to defer the budget until Khan sahib provided his full input to his team. However, given the constitutional obligations and to offset the conspiracy against the provincial government, the budget needed to be passed. One can expect an amended budget after the approval of Khan saheb,” he said.

Published in Dawn, June 27th, 2025