The Khyber Pakhtunkhwa Assembly on Wednesday approved the provincial budget for the financial year 2026-27 amid noisy protests by opposition members during proceedings in the House.
Chief Minister Sohail Khan Afridi addressed the assembly as opposition lawmakers staged a protest. The House witnessed uproar and slogan chanting by both treasury and opposition members, while opposition women lawmakers reached the dais during the chief minister’s speech.
Speaking in the assembly, the chief minister said the federal government had no policy or reforms to improve gross domestic product (GDP) growth. He said the country's GDP growth stood at three per cent, exports were valued at $34 billion and imports at $70 billion, resulting in a trade deficit of $36 billion. He added that the growth rate during the tenure of the founding chairman was six per cent and said there had been no industrial or agricultural reforms.
The chief minister thanked all members of the provincial assembly for standing by the vision of the founding chairman and paid tribute to Finance Adviser Muzammil Aslam. He said provincial revenue had increased from Rs66 billion to Rs128 billion over the past three years and was expected to reach Rs182 billion. He also stated that the federal government had withheld Rs4,758 billion owed to the province and alleged that the federation had consistently treated Khyber Pakhtunkhwa unfairly.
The Assembly also approved the Finance Bill 2026-27, which includes new taxes and higher penalties. A five per cent tax has been imposed for the first time on crypto and digital assets. The penalty for failing to install point-of-sale (POS) systems and e-invoicing has been increased from Rs200,000 to Rs500,000.
Under the bill, annual tax rates for rickshaws, vans and buses have been revised. Businesses failing to register with KPRA may face a fine of Rs400,000 or imprisonment of up to one year. Tax fraud may result in a Rs500,000 fine, imprisonment of up to five years and an additional penalty equal to 100 per cent of the tax due. A fine of Rs50,000 and imprisonment of up to six months has also been proposed for conducting business transactions outside the banking system.
The Finance Bill was presented by Provincial Law Minister Aftab Alam.
Earlier, Aftab Alam and relevant ministers presented 66 demands for grants before the House. He also moved amendments to the Annual Development Programme, which were approved by the assembly.
The House approved Rs627.9 million in grants for the provincial assembly, Rs14.73 billion for the Finance Department, more than Rs4.56 billion for the Home Department, Rs138 billion for police, Rs52.461 billion for higher education, Rs262.62 billion for health, Rs7.77 billion for the Communications Department and Rs1.24 billion for population welfare.
.jpg)
