Balochistan Budget 2025-26: Key Highlights & Analysis
- QUETTA – Balochistan's government, led by the PPP, unveiled a Rs1.03 trillion budget, earmarking Rs349.5 billion for development in fiscal year 2025-26.
- The budget emphasizes austerity to achieve a Rs36.5 billion cash surplus.
- The province anticipates Rs801 billion from the federal tax pool and direct transfers.
Balochistan’s 2025-26 budget prioritizes development and fiscal obligation, aiming for a Rs36.5 billion cash surplus through strategic austerity measures. Finance Minister Mir Shoaib nausherwani announced a Rs1.03 trillion budget,wiht a notable Rs349.5 billion allocated for development. Key highlights include infrastructure upgrades, job creation initiatives, and full utilization of the Rs219 billion development fund. This complete budget, influenced by federal decisions and IMF advice, includes funding for safe city authorities, public welfare projects, and substantial investments in education and healthcare, which, as reported by News Directory 3, showcases the commitment of Balochistan. Discover what’s next for the province!
Balochistan Budget Prioritizes Development, Austerity Measures
QUETTA – Balochistan’s government, led by the PPP, unveiled a Rs1.03 trillion budget, earmarking Rs349.5 billion for development in fiscal year 2025-26. Finance Minister Mir Shoaib Nausherwani presented the budget to the Balochistan Assembly on Tuesday.
The budget emphasizes austerity to achieve a Rs36.5 billion cash surplus. Nausherwani hailed the budget as a “roadmap for enduring economic progress” in the province. He stated that the government fully utilized the Rs219 billion development budget for the first time, contrasting with a 60% average utilization in the prior three years.
The province anticipates Rs801 billion from the federal tax pool and direct transfers. Revenue from Balochistan’s own sources is projected at Rs101 billion, including Rs48 billion from service levies. Federal and foreign aid for development is estimated at Rs104.5 billion.
Current expenditure is projected at about Rs642 billion. Development allocations include Rs245 billion for the provincial PSDP, Rs66.5 billion for federally assisted schemes, and Rs38 billion for foreign-assisted projects. The government will extend the ban on new car purchases, except for law enforcement, as part of its austerity measures, Nausherwani said.
The finance minister said the current expenditure for the outgoing fiscal year was reduced from Rs609 billion to Rs544 billion through spending cuts, while development allocations increased to Rs243 billion.
Major initiatives for fiscal year 2025-26 include infrastructure improvements in remote areas, emergency preparedness, modern reforms, social sector strengthening, social protection measures, job creation, and peace restoration, according to Nausherwani.
The budget includes a 10% salary increase and a 7% pension increase for public-sector employees, aligning with federal decisions. The disparity Reduction Allowance for government employees in grades 1-16 rises to 20%. The government eliminated 6,000 jobs to save Rs14 billion for development, following IMF advice. Though, plans are in place to create 4,188 contract and 1,958 regular government positions to accommodate young job seekers.
Upcoming projects include safe city authorities in eight more cities (Rs18 billion allocation), public welfare at the district level (Rs20 billion), sanitation schemes (Rs3 billion), 1,000 water filtration plants, and a dam in Mashkel (Rs25 billion). Skill development for youth will receive Rs16 billion, along with interest-free loans.
Nausherwani emphasized the government’s commitment to Sustainable Development Goals, including new dams, roads, industrial zones, terminals, railways, microfinance, and agriculture. A Rs500 million grant will support environmental protection under the Balochistan Climate Change Fund.Universities will receive Rs8 billion, with an additional Rs3 billion from the Higher Education Commission. Early childhood and primary education will receive Rs28 billion, and Global Partnership education will get Rs6.7 billion. The health sector is allocated Rs16.4 billion, with Rs71 billion for the non-development budget. This budget underscores Balochistan’s role in regional development and its commitment to fiscal responsibility.
What’s next
The Balochistan government will now focus on implementing these budget proposals and monitoring their impact on the province’s economic and social development.