BUDGET FY26: Balochistan govt presents Rs1,028bn surplus budget for FY26

QUETTA: The PPP-led coalition government in Balochistan on Tuesday presented a surplus budget for the financial year 2025-26, with a total outlay of Rs1,028 billion. The provincial government has allocated Rs249.50 billion for the Public Sector Development Programme which would be spent on new and ongoing schemes.

Finance Minister Mir Shoaib Nosherwani tabled the budget in the Balochistan Assembly. In his budget speech, the minister said this budget, which was prepared in consultation with all stakeholders, provides a roadmap for sustainable economic development of the province.

The finance minister said the provincial government successfully utilised the entire development budget of the current fiscal year. He further said the government will continue to prioritise sectors such as education, health, law and order and climate resilience.

He said Balochistan will receive Rs801 billion as its share from the divisible pool while the provincial own source revenue was estimated at Rs101 billion, including Rs48 billion from levy on services.

The federal and foreign assistance for the development projects is estimated at Rs104.5 billion. He said Rs642 billion has been allocated for the current expenditure while development allocations of Rs349 bn, include provincial PSDP of Rs249.5 billion.

He said Sarfraz Bugti-led government has decided to continue a ban on purchasing new cars as part of its austerity campaign. However, the law enforcement agencies would be exempted from this ban.

Nosherwani said the major initiatives of the government for the FY2025-26 include improving basic infrastructure in far-flung and backward areas of the province, pre-emptive measures to deal with emergency situations, introduction of modern reforms, strengthening of social sector, steps for social protection, creation of job opportunities and restoration of complete peace.

He said the budget preparation was guided by financial realities, the province’s economic capacity, and the urgent need to address inflation and employment challenges. The government has enhanced its revenue target to Rs226 billion for the next fiscal year, he said, adding that the budget is the result of consultation with all political parties.

The finance minister announced a 10 percent salary increase for government employees from grade 1 to 22, while a 7 percent pension raise for retired workers.

In addition, the government proposed a 20 percent disparity reduction allowance for provincial employees from grade 1 to 16. A sum of Rs1 billion has been earmarked for the Balochistan Pension Fund, while Rs4.5 billion has been allocated for the Balochistan Health Card scheme to improve healthcare access for the population.

To address urban security and development, Rs18 billion has been allocated for the installation of Safe City projects in eight more cities, while Rs20 billion will be used to meet public needs at the district level. The government has set aside Rs3 billion each for urban sanitation and the installation of one thousand filtration plants to provide clean drinking water.

A key highlight of the budget is the allocation of Rs25 billion for the construction of Mashkhel Dam in Chagai, aimed at enabling water sales to foreign companies and supporting local industrial zones with solar grids.

In the development sector, the Communication and Works Department received top priority with an allocation of Rs55.2 billion, accounting for 19 percent of the total development budget.

The irrigation sector has been allocated Rs42.78 billion to support agricultural growth and water management. The school education sector will receive Rs19.85 billion for development projects, while Rs16.15 billion has been allocated for the improvement of healthcare infrastructure and services. The Local Government Department will receive Rs12.91 billion for municipal development, and the Agriculture Department has been allocated Rs10.17 billion to modernise farming practices.

The energy sector will receive Rs7.84 billion to promote renewable energy projects, while higher education has been allocated Rs4.99 billion to upgrade facilities and expand access. Rs12.66 billion has been earmarked for Science and Information Technology to advance the government’s “Digital Balochistan” vision, focusing on e-governance and internet accessibility.

The Public Health Engineering Department will receive Rs17.16 billion to improve water supply and sewerage systems, while the Mines and Minerals sector has been allocated Rs567.6 million to develop Balochistan’s mineral wealth. Rs154 million has been set aside for women’s development initiatives to promote gender equality in health, education, and economic participation.

In terms of non-development expenditure, the school education sector has been allocated Rs101 billion, health Rs71 billion, higher education Rs24 billion, agriculture Rs16.77 billion, local government and rural development Rs42 billion, communication and works Rs17.48 billion, law and order Rs83.7 billion, irrigation Rs5.3 billion, public health engineering Rs11.2 billion, fisheries and coastal development Rs2.19 billion, sports and youth affairs Rs2.44 billion, and the food department Rs1.19 billion.

The budget also includes the creation of over 4,000 contract-based jobs and nearly 2,000 permanent positions for the next fiscal year to address youth unemployment.