Peshawar – July 14, 2025 – The Khyber Pakhtunkhwa (K-P) government has presented an ambitious development spending plan for the fiscal year, promising a wide range of infrastructure, health, and education initiatives, despite facing fiscal constraints, revenue shortfalls, and limited federal transfers.
According to official budget documents and planning ministry sources, the proposed development plan outlines high public investment in key sectors, but analysts and opposition parties have criticized the blueprint for being overly optimistic, citing the province’s ongoing cash flow problems and dependence on federal support.
The spending plan allocates significant resources toward transport infrastructure, district-level development, social welfare schemes, and public health projects. However, concerns remain over the government’s ability to mobilize resources, with several projects marked as “subject to availability of funds.” This has raised doubts over their feasibility and timely implementation.
Experts argue that while the vision outlined in the budget reflects the province’s development priorities, it lacks a clear financing strategy, especially in light of lower-than-expected federal divisible pool transfers and stagnant own-source revenue. The provincial finance department is reportedly under pressure to generate additional revenue through tax reforms and improved public financial management.
Key sectors such as primary healthcare, technical education, and rural development have seen increases in allocations, but delays in fund release and bureaucratic inefficiencies may hamper execution. Observers also pointed out that many of the projects listed are carryovers from previous years, which have already faced repeated delays due to funding gaps and procurement issues.
Government officials defend the plan, saying that the provincial leadership is committed to long-term growth, job creation, and social uplift despite financial hurdles. They added that efforts are underway to engage development partners, improve budget transparency, and attract private sector investment through public-private partnerships (PPPs).
Political commentators note that the current plan also appears to be shaped by electoral considerations, with a strong focus on visible, short-term projects that can yield political dividends ahead of upcoming local elections. Critics argue that this may come at the expense of long-term institutional reform and sustainable economic planning.
The K-P Planning and Development Department is expected to conduct quarterly reviews of project performance to address implementation lags and improve budget utilization. However, the success of the overall spending plan will depend heavily on the province’s ability to improve revenue collection, enhance administrative efficiency, and secure timely federal disbursements.
