By Our Correspondent
QUETTA: The Government of Balochistan on Tuesday presented a Rs1,089 billion provincial budget for the fiscal year 2026-27 in the provincial assembly in Quetta, outlining an extensive development plan focused on economic growth, job creation, and infrastructure expansion.
Provincial Finance Minister Mir Shoaib Nosherwani tabled the budget and highlighted what he described as improved fiscal management, higher utilisation of development funds, and a broader development strategy covering multiple sectors across the province.
He stated that the government achieved 115 percent utilisation of the previous fiscal year’s development allocation, reflecting accelerated execution of ongoing projects. He added that 2,966 development schemes—both ongoing and new—are expected to be completed during the current financial year.
Overall fiscal framework and development allocation
For FY2026-27, total provincial expenditure has been estimated at Rs1,089 billion. The non-development budget has been set at Rs797 billion, while the development budget stands at Rs206 billion.
Within the development portfolio, Rs106 billion has been allocated for new schemes and Rs100 billion for ongoing projects. The budget also includes Rs45 billion in federal development assistance and Rs40 billion in foreign project aid, highlighting continued reliance on external financing for major initiatives.
The provincial government said it aims to increase internal revenue generation, targeting provincial income of Rs170 billion in the coming period.
Institutional expansion and reforms
The finance minister announced the establishment of the Bolan Insurance Company Limited under a public-private partnership model. The new entity will provide insurance coverage for government assets, public infrastructure, health-related risks, natural disasters, and other development projects.
In the energy and agriculture sector, Rs3.8 billion has been allocated for the solarisation of tube wells, aimed at reducing electricity costs and promoting sustainable irrigation solutions.
A further Rs10 billion has been set aside for the proposed Bank of Balochistan, while Rs3 billion will go to the Balochistan Aviation Company. Another Rs3 billion has been allocated for master planning of divisional headquarters to support structured urban development.
For mineral sector development and investment promotion, Rs490 million has been earmarked. Additionally, Rs85 million will be spent on the preservation and promotion of cultural and archaeological heritage.
Sector-wise allocations and governance spending
Local government has been allocated Rs8.5 million for development and Rs41.4 billion for non-development expenditure. The Communication and Works Department received Rs27 billion for development projects and Rs20 billion for operational spending.
For law and order, Rs2.8 billion has been allocated under non-development expenditure. The Board of Revenue has been assigned Rs2.8 billion for development and Rs8.2 billion for non-development expenses.
The transport sector has been allocated Rs1.5 billion for development and Rs1.29 billion for non-development spending.
Job creation plan
The budget includes the creation of 5,000 new jobs during FY2026-27. Of these, 3,000 positions will be in the education sector, 500 in health, 1,000 in newly established districts, and 500 in other government departments. Officials said the plan is aimed at addressing unemployment and expanding public service delivery.
Health sector allocation
The health sector has been allocated Rs6 billion for development projects, while Rs90 billion has been set aside for non-development expenditures excluding assets.
Education sector funding
For school education, Rs12 billion has been allocated for development spending and Rs115 billion for non-development costs. The colleges sector has been assigned Rs2.3 billion for development and Rs28.7 billion for operational expenses.
Agriculture sector support
The agriculture sector will receive Rs4.4 billion for development and Rs19.2 billion for non-development expenditure. The commodity management department has been allocated Rs9 million for development and Rs5.08 billion for non-development costs.
Meaning
The budget reflects a development-focused approach aimed at improving infrastructure, institutional capacity, and employment opportunities while maintaining reliance on federal and foreign funding support.
Impact
Job creation plans and infrastructure spending are expected to support youth employment and service delivery, though limited internal revenue generation may constrain long-term fiscal independence.
Future Outlook
Key outcomes will depend on execution capacity, revenue growth, and successful completion of infrastructure and institutional reforms such as banking, insurance, and energy projects.
Pakistan Angle
Balochistan’s budget aligns with broader national priorities of infrastructure development, energy reform, and employment generation, while also highlighting ongoing fiscal dependency on federal transfers and external assistance.
