Khyber Pakhtunkhwa Chief Minister Sohail Afridi on Friday presented the provincial budget for the fiscal year 2026-27. The budget outlay is Rs2.17 trillion, with an estimated fiscal deficit of Rs48 billion, according to the budget documents.

At the outset of his budget speech, he said all parliamentarians of the PTI from the provincial assembly had “unanimously decided” to present the budget.

Earlier, the presentation of the KP budget remained doubtful as the provincial government reportedly linked it to a meeting with incarcerated PTI founder Imran Khan.

In his speech, Afridi also announced that the budget he was presenting had a deficit of Rs48bn. “The KP government will not seek a loan of Rs48bn from anyone,” he said, adding that “we will provide this amount to the people of KP from our own resources”.

Moreover, he said the budget would be in accordance with the Federal Board of Revenue’s tax collection target of Rs15.2 trillion.

“There will be no grants for the Centre in this budget,” he added.

Here, he was apparently referring to an arragment under which provinces have been asked to freeze their share from the federal tax divisible pool under the National Finance Commission award, returning any receipts above the current year’s level to the Centre as grants.

The KP CM went on to say in his speech that his government’s representatives had clearly stated in a meeting of the National Economic Council that a decision on providing grants to the Centre could not be made without consulting Imran.

“We said Imran Khan sahib is the final authority on this,” he said, adding that the KP government’s representatives were not being allowed to meet Imran. He said his party had demanded a meeting with Imran ahead of the provincial budget, further reiterating the PTI’s allegation that Imran and his spouse, Bushra Bibi, were being kept in solitary confinement and isolation.

Amid protest by the opposition, he continued that a demand to allow Imran’s meetings with his family had also been made. “The restoration Imran’s fundamental rights was also demanded,” he added.

He went on to say that demands for Imran’s treatment in the presence of his personal physicians and allowing him telephone calls with his sons and access to television, books and newspapers were also demanded.

“We will not sign any draft until we are allowed to meet Imran,” he asserted, seemingly linking the provision of grants from KP to the Centre to meetings with Imran.

Coming to the budget for FY2026-27, he said his government’s focus was now on moving from development to progress and prosperity. The vision under the FY27 budget, “Khushaal Pakistan”, was to ensure that the fruits of prosperity reached the people.

Afridi said the KP government was to get Rs1.59tr through federal transfer in the coming fiscal year, and the target for provincial receipts was set at Rs182.4bn. Overall, the revenue target was set at Rs2.12tr against the budgeted expenditure of Rs2.17tr.

A breakdown shows that Rs1.64trillion has been allocated for current expenditure and Rs524.2bn for the annual development programme.

Grants from the Centre for merged districts have been projected at Rs199bn and foreign assistance for projects has been estimated at Rs150bn.

Meanwhile, federal development and non-development grants under the Public Sector Development Programme (PSDP) have been estimated at Rs 5.1bn.

The budget proposals also include a 7pc increase in the salaries and pensions of government employees.

According to the budget documents, no new taxes have been proposed for the coming fiscal year while the provincial government has revised down the infrastructure development cess to 0.75pc from existing 2pc.