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Balochistan unveils tax-free Rs1.089 trillion budget, announces 7% pay raise

Balochistan unveils

QUETTA: The Balochistan government presented a Rs1.089 trillion tax-free budget for the 2026-27 fiscal year, announcing a 7% increase in salaries and pensions for provincial employees while prioritizing education, health and law and order.

Finance Minister Mir Shoaib Nosherwani presented the budget in the provincial assembly, saying no new taxes had been imposed. The budget includes a 7% raise in salaries and pensions and outlines significant allocations for public services, development projects and employment generation.

The minister said Rs270 billion has been earmarked for general public services, Rs157 billion for education, Rs74 billion for health and Rs108 billion for maintaining law and order. The government has also allocated Rs10 billion for the establishment of the Bank of Balochistan.

According to the budget documents, non-development expenditures are estimated at Rs798 billion, while the province expects to receive Rs30.61 billion in federal grants. An allocation of Rs5 billion has been made for Phase II of Safe City projects.

Nosherwani announced the creation of 5,000 new jobs for young people, including 3,000 positions in the school education sector, 500 in the health department, 1,000 for newly created districts and 500 in various government departments.

The budget also allocates Rs1 billion for the Kissan Card program aimed at supporting farmers. In addition, sales tax on public transport has been abolished, while new electric vehicles have been granted a 100% tax exemption.

The finance minister said the government had sought to reduce official privileges amid challenging economic conditions, adding that education, healthcare and security remain the administration’s top priorities.

“We are moving in the right direction for the development of the province, and government initiatives are not just on paper but are producing tangible results,” Nosherwani told the assembly.