- Imran Khan unhappy with Rs157bn in surplus in KP budget.
- He wants amount to be redirected to development projects.
- PTI founder misinformed, provided false information: source.
PESHAWAR: The passing of the budget for the Fiscal Year 2025-26 by the Khyber Pakhtunkhwa government continues to have further complications as the former prime minister has now opposed the province’s surplus budget under the International Monetary Fund’s (IMF) conditions, The News reported on Thursday.
The development comes in light of the backlash received by KP Chief Minister Ali Amin Gandapur and his government after the provincial assembly passed its FY26 budget sans approval from Khan — who has been behind bars at Rawalpindi’s Adiala jail since September 2023.
Since then, PTI activists criticised CM Gandapur calling the provincial chief executive and other MPAs “traitors” — which in fact raises the question as to why the PTI founder wanted a briefing on the KP budget and what changes he intended to make.
Credible sources within the PTI told this correspondent that party’s patron-in-chief was not happy with the inclusion of Rs157 billion in surplus in the KP budget as per the IMF demands.
He believes that the federal government is pushing the country further into debt and that this money should be spent on public welfare. Khan has categorically opposed keeping any surplus to appease the IMF, and for this reason, he wanted a direct briefing on the provincial budget to redirect the surplus towards other development projects.
Sources further revealed that during former CM Mahmood Khan’s tenure, PTI had also refused to include a surplus budget. With this move, the KP government has potentially jeopardised Pakistan’s ongoing negotiations with the IMF just days before the scheduled board meeting.
Adviser to the KP CM on Information Muhammad Ali Saif, confirmed to this correspondent that the former PM had raised concerns regarding the surplus budget, saying that if the province has a surplus, why would the federal government provide it with funds?
He added that Khan was not angry, but he wanted more funds to be allocated to education, health and the environment.
A senior PTI leader, speaking to publication on the condition of anonymity, alleged that some party figures deliberately provided Khan with false information, telling him that the Rs157 billion surplus was kept solely on the IMF’s demand when in reality, that was not the case.
There had already been a surplus in the current fiscal year, and the surplus in the upcoming year was designed in the province’s best interest. The provincial government has not received any specific target from the IMF in this regard.
He added that the PTI founder was also misinformed that the province returns the surplus funds to the federal government, while in reality, these resources remain under provincial control. Severe disagreements have now erupted within the PTI over the budget.
Meanwhile, Dr Shahbaz Gill has admitted that the approval process was flawed and stated that the party’s political committee had not given final authorisation to the budget.
Former provincial finance minister Taimur Saleem Jhagra stated during a TV programme that although he was part of the committee formed by Imran Khan to review the budget, he was never consulted beforehand — only after the budget was passed his input was sought.
A member of PTI’s political committee told the publication that a unanimous decision was made on June 22 that the budget must not be passed without consulting Khan. If meeting him wasn’t possible, approval should have been delayed until June 30 to maintain pressure on the federal government.
However, CM Gandapur ignored this consensus and had the budget approved in the Assembly on June 24, even though no other provincial assembly had passed its budget by that date.
“What was the urgency?” the committee member asked.
Senior lawyer and PTI Secretary General Salman Akram Raja wrote on X, “Imran Khan had clearly instructed that no budget be approved without his consultation and approval. The June 24 approval was against party consensus and the chairman’s directive”.
CM Gandapur defended his actions by saying that not approving the budget could have triggered a constitutional crisis in the province.
He claimed that the federal government was conspiring to impose Governor’s Rule in KP and that such preparations were already underway. Gandapur added that Imran Khan never instructed him to dissolve the assembly, and he had wanted to consult him but was not allowed to meet him.
Adviser to the CM on Finance, Muzzammil Aslam, told this correspondent that the IMF has not set any surplus target for the provincial government. He explained that over Rs100 billion is already in provincial coffers for the current fiscal year, and this amount is expected to reach Rs125 billion by June 30.
He clarified that the surplus is not returned to the federal government but is allocated to debt servicing and other funds. He said that the budget figures are not absolute, but estimates.
For the current year, the province has a surplus budget of Rs2,119 billion, while the federal government is expected to transfer Rs1,800 billion under the NFC Award, electricity royalties and other heads. The Rs157 billion surplus mentioned in the budget is based entirely on estimates.
Muzzammil Aslam emphasised that the surplus is the province’s savings, which can be used to launch major development projects. He further explained that when the federal government collects less revenue, provinces also receive fewer funds.
The federal government aimed to collect Rs12,900 billion in taxes this year but has only managed Rs11,700 billion so far, leading to fewer transfers to provinces. He concluded by saying that the budget was prepared in line with Khan’s vision and instructions, and if Khan wishes to make any changes, they will be incorporated.
