The Balochistan government has presented a Rs 1,089 billion tax-free budget for the fiscal year 2026-27, announcing a 7% increase in salaries and pensions for government employees.
The budget was presented in the provincial assembly session chaired by Speaker Abdul Khaliq Achakzai, where Finance Minister Mir Shoaib Nosherwani outlined key financial targets and allocations.
He said the province utilized 115% of its previous budget and estimated total expenditure for the new fiscal year at Rs 1,089 billion, while revenue for the current year stood at Rs 886 billion.
According to the budget details, non-development expenditure has been set at Rs 797 billion, while the development budget stands at Rs 206 billion. This includes Rs 106 billion for new schemes and Rs 100 billion for ongoing projects. The province will also receive Rs 771 billion under the NFC Award, the minister said.
The budget remains tax-free, with no new taxes introduced. Several sectors have been given tax exemptions, including public transport, electric vehicles, public property insurance, and education services, which have been brought to zero sales tax. Investment in export processing zones has also been exempted from provincial taxes.
Education, health, and clean water have been prioritized in the new budget. The education sector has been allocated Rs 160 billion in total, including Rs 115 billion for non-development spending and Rs 12 billion for development in school education, while Rs 28.7 billion has been allocated for colleges.
The Balochistan government is set to present a Rs1.2 trillion surplus and tax-free budget for FY 2026-27. Education receives a record allocation of over Rs150 billion, while government employees are expected to get salary and pension relief. #PakistanConnect pic.twitter.com/HoArhbO5B6
— P Connect (@ConnectingPak) June 17, 2026
The health sector has received Rs 85 billion in total allocations, including Rs 90 billion for non-development and Rs 6 billion for development spending, according to official figures.
For agriculture, Rs 23.6 billion has been set aside, including development and non-development allocations.
The government also announced 5,000 new job opportunities for youth, including 3,000 in education, 500 in health, 1,000 in newly created districts, and 500 in other departments.
Officials said the budget is in surplus, with plans to increase provincial revenue to Rs 170 billion. Development initiatives include ongoing dam projects with federal support, the establishment of Bolan Insurance Company under a public-private partnership, Rs 10 billion for the Bank of Balochistan, and Rs 3 billion for Balochistan Aviation Company.
The government also allocated funds for divisional headquarters master plans and emphasized expanding infrastructure and financial institutions across the province.
