Khyber Pakhtunkhwa (KP) has demonstrated exceptional fiscal management in 2024, achieving a Rs103 billion surplus in the first quarter through streamlined spending and efficient resource allocation, especially in health, education, and renewable energy. KP’s budget prioritizes social welfare, with substantial funds for public healthcare and education, and a significant push toward solar energy adoption, which aims to reduce long-term costs.
“The provincial government allocated a substantial 35% of its budget to health and education, going beyond the requirements set by the IMF”.
Other provinces showed varied fiscal performance: Punjab faced a Rs160 billion deficit, as large infrastructure investments increased expenses beyond revenue.
The diverse fiscal outcomes among these provinces illustrate the impact of distinct economic priorities and policy approaches. KP’s efficient budgeting serves as a model, highlighting the benefits of well-planned fiscal strategies that align economic growth with social investment. The continued success of such initiatives could inspire similar fiscal reforms across Pakistan’s provincial administrations.
