Pre-budget Seminar Sparks Vital Dialogue On KP’s Fiscal Future

PESHAWAR, (UrduPoint / Pakistan Point News - 20th May, 2025) The Centre for Governance and Public Accountability (CGPA), in collaboration with the Development Insights Lab (DIL) and the Department of Economics, University of Peshawar on Tuesday hosted a high-level Pre-Budget Seminar to encourage inclusive discussions around Khyber Pakhtunkhwa’s (KP) 2025–26 budget.

The seminar aimed to bring together diverse voices to explore fiscal priorities, transparency and strategies for equitable public financing.

Held at the University of Peshawar’s Economics Department Conference Hall, the event gathered policymakers, academics, economists, civil society members, students, and business leaders to deliberate on challenges and opportunities in KP’s financial planning.

In her opening remarks Shazadi Rubab, Program Officer at CGPA, opened the session by outlining the organization’s commitment to transparency, accountability, and public engagement.

She acknowledged DIL and the Department of Economics for co-hosting the event.

Prof Dr Muhammad Taib, Dean of Social Sciences, emphasized the importance of data-driven, inclusive planning to ensure that budget allocations reflect the actual needs of the province.

Chairman of the Department of Economics Sajjad Ahmad Jan a comparative fiscal analysis, highlighting KP’s record-high proposed budget of Rs. 1,754 billion.

He underscored climate change as a key disruptor to economic stability and called for climate-resilient development strategies.

MPA Ahmed Kundi addressed budget formula on challenges, advocating for greater flexibility, clear performance indicators, and citizen-focused planning.

He encouraged the public to use social media platforms to voice budget-related concerns and participate in the policy process.

Sarhad Chamber of Commerce and Industry (SCCI) President Fazal Moqeem Khan stressed the need to retain local talent and promote innovation-led growth.

He pointed to the fiscal complications following the FATA merger and urged for improved funding and infrastructure in these areas.

Former MPA Ghazan Jamal praised the KP government’s budget presentation but criticized the limited allocation for the Newly Merged Districts (NMDs).

He argued that the current National Finance Commission (NFC) resource allocation formula has failed to reflect the post-merger fiscal realities. With 73.3 percent of the NMDs' population living below the poverty line, he called for a revision of the formula under the principle of “Finance Follows Function.”

Renowned journalist Lehaaz Ali emphasized that despite KP’s monthly budget of Rs 83 billion and an annual Rs 800 billion allocated for government salaries, budget mismanagement continues to hinder effective service delivery.

He highlighted systemic inefficiencies in planning, spending, and oversight as key issues.

During a question-answer session, CGPA Executive Director Muhammad Anwar questioned the transparency of funds allocated to education and health, specifically schools and Basic Health Units (BHUs).

He emphasized the need for audits and real-time tracking of expenditures to ensure accountability and effective service delivery.

The seminar concluded with a strong call for a transparent, participatory, and equitable budgeting process for KP.

Participants urged the government to prioritize marginalized communities, ensure climate resilience, and reinforce oversight mechanisms.

CGPA and its partners reaffirmed their commitment to continuing the dialogue to influence sound fiscal policy and governance in the province.

This pre-budget consultation marked a critical step in shaping a more inclusive and effective financial roadmap for KP in the fiscal year 2025–26.