Toru says federal budget to exacerbate inflation

PESHAWAR: Khyber Pakhtunkhwa Minister for Food Zahir Shah Toru on Tuesday rejected the federal budget 2025-26, saying that it would further exacerbate inflation across the country.

Talking to the reporters here, the provincial minister lamented that a major chunk of the federal government’s budget would be consumed by debt servicing, which he termed a reflection of the federal government “serious economic mismanagement.”

The economic stability cannot be expected in a country where a Form-47-made government is imposed and there is no political stability,” he addedToru criticised the federal government’s allocation of approximately Rs1,000 billion for development projects, calling it a “significant decline” from the Rs1,500 billion development budget of the previous year. He termed it a “blow to the government’s own claims of economic revival.”

Calling the allocation of only Rs550 million for development in a terrorism-affected province like Khyber Pakhtunkhwa “shameful,” the minister said it was an insult to the sacrifices of the people of KP who laid down their lives for peace. “This is nothing short of an attempt to alienate them from the federation,” he added.

In contrast, Zahir Shah said that the KP government had set a target of repaying Rs150 billion in debt through this year’s annual budget, which, he described, as a “positive and responsible initiative” that indicates the province is avoiding further borrowing.

The KP food minister also criticised the federal government’s energy policies, particularly the imposition of an 18% tax on solar panels. “This is not only unjust towards the poor and middle-income people, but it also discourages alternative energy adoption,” he stated.

He warned that taxes on petrol and electricity would add further pressure on inflation. “The flawed policies of the federal government and Punjab have already driven farmers to the brink of starvation. The lack of relief in the budget will worsen their plight, directly affecting the production of essential commodities like wheat, rice, and sugar which will lead to a surge in prices,” he added.

Toru alleged that the centre continued to treat KP unfairly. “Even the electricity that KP generates is not being supplied back to the province this is blatant injustice,” he went on to claim.

Toru said that following the directives of PTI founding chairman Imran Khan, the current provincial government is actively pursuing an anti-corruption agenda. He revealed that an accountability committee has been established to monitor irregularities in provincial departments, and officials against whom complaints were received have been removed from their posts.