Balochistan Presents Second Consecutive Surplus Budget for FY 2025-26

Strategic Insights -

The Pakistan Peoples Party-led coalition government in Balochistan has presented its second consecutive surplus budget for the fiscal year 2025-26, with total allocations amounting to Rs. 1.028 trillion. The budget aims to provide a comprehensive roadmap for the province's sustainable economic growth, with a focus on improving basic infrastructure, tackling inflation and unemployment, and introducing modern reforms.

Key Takeaways:

  • The budget has earmarked Rs. 249.5 billion for the Public Sector Development Programme (PSDP), making up 24.3% of the total development budget.
  • The government has decided to continue the ban on purchasing new official vehicles under its austerity measures, with law enforcement agencies remaining exempt from this restriction.
  • The finance minister announced a 10% salary increase for government employees from grades 1 to 22, along with a 7% pension raise for retired staff, and a 20% Disparity Reduction Allowance for employees in grades 1 to 16.
  • Rs. 18 billion has been allocated for the installation of Safe City projects in eight additional cities, and Rs. 20 billion has been set aside to address public needs at the district level.
  • The government has allocated Rs. 3 billion each for urban sanitation projects and the installation of 1,000 filtration plants to provide clean drinking water.
  • A major highlight of the development plan is the Rs. 25 billion earmarked for the construction of the Mashkhel Dam in Chagai.
  • The Communication and Works Department has received the highest allocation at Rs. 55.2 billion, while the irrigation sector has been allocated Rs. 42.78 billion to promote agricultural productivity and water management.
  • The school education sector will receive Rs. 19.85 billion for developmental initiatives, and Rs. 16.15 billion has been designated for upgrading healthcare services.

Statistics:

  • Total allocations for the fiscal year 2025-26: Rs. 1.028 trillion
  • Allocation for the Public Sector Development Programme (PSDP): Rs. 249.5 billion
  • Expected revenue collection from the province: Rs. 101 billion
  • Federal divisible pool allocation for Balochistan: Rs. 801 billion
  • Allocation for current expenditures: Rs. 642 billion
  • Allocation for development spending: Rs. 349 billion
  • Allocation for the Safe City project: Rs. 18 billion
  • Allocation for urban sanitation projects and filtration plants: Rs. 6 billion

Sources:

  • [Pakistan Today]
  • [Business Recorder]
  • [Daily Times]
  • [Balochistan Government]
  • [Pakistan Peoples Party]