Speakers call for transparency, fiscal reforms ahead of KP budget 2025-26

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DLP Report
PESHAWAR
The Center for Governance and Public Accountability (CGPA), in collaboration with the Development Insights Lab (DIL) and the Department of Economics, University of Peshawar, organized a pre-budget seminar aimed at fostering transparent and inclusive dialogue on fiscal priorities, challenges, and policy solutions in the lead-up to the Khyber Pakhtunkhwa (KP) Budget 2025–26.
The seminar, held at the University of Peshawar, brought together a wide range of stakeholders including policymakers, academics, civil society representatives, business leaders, and students. The event focused on critical issues such as budget transparency, fiscal decentralization, and gender-responsive public finance.
Welcoming the participants, Ms. Shahzadi Rababzeb, Program Officer at CGPA, opened the session. Dr. Muhammad Tayyab, Dean of the Faculty of Social Sciences at the University of Peshawar, emphasized the importance of data-driven and comprehensive financial planning. He identified key challenges in public finance and called for improved fiscal strategies.
Sajjad Ahmed Jan, Chairman of the Department of Economics, noted that the provincial budget is a reflection of the government’s income and expenditure, directly impacting the lives of citizens. He presented a comparative review of KP’s financial performance and outlined the proposed budget of Rs 1,754 billion. Highlighting climate change as a major economic threat, he called for environmentally conscious planning.
Member of the Provincial Assembly, Ahmed Kundi, underscored the need for greater transparency in budgeting and recommended setting clear departmental targets and incorporating budgetary flexibility. He also stressed enhancing revenue generation, empowering local governments, and utilizing social media as a tool for public accountability.
Fazal Muqeem Khan, President of the Sarhad Chamber of Commerce and Industry, advocated for fostering local capacities and an innovation-driven economy. He also highlighted the need for financial autonomy in light of the FATA merger, citing limited financial resources and the importance of enabling youth and entrepreneurs to contribute to national development.
Former MPA Ghazan Jamal acknowledged some positive fiscal trends in the KP budget but expressed concern over insufficient funding for the newly merged districts (NMDs). He urged a revision of the National Finance Commission (NFC) formula to ensure equitable resource distribution, emphasizing the slow progress of merger implementation despite the 2018 constitutional amendment.
Senior journalist Zimran Ali criticized gaps in budget execution, pointing out that despite an annual expenditure of Rs 800 billion on salaries, service delivery remained ineffective. He stressed the need for structural reforms to ensure that budgetary impact is truly felt by the public