PESHAWAR: Qaumi Watan Party provincial chairman Sikandar Hayat Khan Sherpao on Monday said the Khyber Pakhtunkhwa budget for the fiscal year 2026-27 could not be described as tax-free as people continued to bear the burden of various indirect taxes.

Speaking at a press conference at Watan Kor, the party’s secretariat here, he said that despite remaining in power for the last 13 years, the Pakistan Tehreek-i-Insaf had failed to provide relief to people amid rising inflation.

Flanked by the party’s secretary information Tariq Khan and others, he said inflation had severely affected low-income families, making it difficult for them to meet basic needs.

Mr Sherpao said the federal government should reduce its own expenditures and generate resources instead of depending on provinces for financial support.

Sikandar flays Centre for seeking financial support from provinces

Mr Sherpao asked the federal government to fulfil its commitments and provide the promised funds to the merged districts.

He alleged that the Pakistan Tehreek-i-Insaf leadership remained focused on securing relief for its founder while neglecting key public issues.

He said the provincial government had failed to improve security, reduce poverty and create employment opportunities for youth.

Mr Sherpao said around 80 per cent of the provincial budget depended on federal transfers, making KP particularly vulnerable to federal fiscal decisions.

He said the total outlay in the federal budget stood at Rs18.8 trillion, of which nearly Rs8 trillion had been allocated for debt servicing.

“This means a substantial portion of the federal budget is being spent on loan repayments instead of development and job creation,” he said.

He added that despite claims of structural reforms, the federal government had not undertaken meaningful corrective measures.

Mr Sherpao noted that only Rs1 trillion had been allocated for the Public Sector Development Programme, and warned that increasing debt obligations would continue to undermine development spending.

He described the federal government’s growth target of four per cent as unrealistic and said agriculture, a key sector of the economy, had suffered due to ineffective policies.

He also questioned the feasibility of achieving the tax collection target of Rs15.2 trillion and argued that economic growth depended on investment rather than taxation alone.

Commenting on the provincial budget, Mr Sherpao claimed that the projected deficit of Rs48 billion had been understated and said the budget appeared to be more of an expenditure statement than a comprehensive development strategy.

He demanded that the federal government announce a new National Finance Commission Award, clear arrears of net hydel profit to KP and ensure the transfer of three per cent NFC share to the merged districts.

Published in Dawn, June 23rd, 2026