The Balochistan government on Wednesday unveiled a Rs1.089 trillion tax-free budget for the fiscal year 2026-27, announcing a series of relief measures including a 7% increase in salaries and pensions, 5,000 new government jobs, tax exemptions on public transport and educational services, and increased spending on education and health.
Presenting the budget in the Balochistan Assembly, Finance Minister Mir Shoaib Nosherwani said the province’s total expenditure for the upcoming fiscal year is estimated at Rs1.089 trillion, while total provincial revenue stood at Rs886 billion during the outgoing fiscal year.
The minister said the budget contains no new taxes and is aimed at maintaining fiscal stability while expanding public services and development spending.
For low and middle-income households grappling with inflation and rising living costs, the absence of new taxes is among the most notable features of the budget.
Salary and Pension Relief
The provincial government announced a 7% increase in salaries for government employees and a similar 7% increase in pensions.
The measure is expected to provide relief to thousands of households dependent on public sector incomes, although economists note that inflationary pressures remain a challenge across the country.
5,000 New Government Jobs
In a move aimed at addressing unemployment among young people, the government announced the creation of 5,000 new positions during the 2026-27 fiscal year.
According to the budget, 3,000 jobs will be created in the School Education Department, 500 in the Health Department, 1,000 in newly established districts and 500 in other provincial departments.
The announcement comes as employment generation remains a key demand from Balochistan’s growing youth population.
Tax Exemptions and Public Relief
The government has exempted public transport services from sales tax, a measure that could reduce operational costs and benefit daily commuters.
Educational services have also been granted a zero percent sales tax rate, while a 100% tax exemption has been announced for new electric vehicles.
In addition, sales tax on public property insurance has been abolished, and provincial taxes on foreign investment in export processing zones have been withdrawn to encourage investment and economic activity.
Education Receives Major Allocation
Education emerged as one of the largest beneficiaries of the budget.
The provincial government allocated a total of Rs160 billion for the education sector, including Rs115 billion in non-development spending and Rs12 billion in development funding for the School Education Department.
The Colleges Department has been allocated Rs28.7 billion in non-development expenditures and Rs2.3 billion for development projects.
Officials say the allocations are intended to improve educational infrastructure, staffing and access to learning opportunities across the province.
Health Sector Funding
The health sector also received significant attention in the budget.
The government allocated Rs85 billion for health services, alongside development funding aimed at strengthening hospitals, healthcare infrastructure and public service delivery.
Health remains one of the most critical sectors for low-income communities that rely heavily on public healthcare facilities.
Development and Economic Initiatives
The province’s development budget has been set at Rs206 billion, including Rs106 billion for new development schemes and Rs100 billion for ongoing projects.
The budget also includes:
- Rs10 billion for the proposed Bank of Balochistan
- Rs3 billion for the Balochistan Aviation Company
- Rs3 billion for divisional headquarters master plans
- Continued investment in dam construction projects across the province with federal support
The finance minister further announced that the provincial government has established Bolan Insurance Company Limited under a public-private partnership model to provide insurance coverage for public assets, health, accidents and natural disasters.
Challenges Remain
While the budget includes several relief measures, it does not contain a major new social protection programme, direct cash assistance scheme or food subsidy package specifically targeting the poorest segments of society.
Similarly, despite agriculture being a major source of livelihood in the province, the sector received Rs4.4 billion in development funding and Rs19.2 billion in non-development allocations, raising questions about whether the resources are sufficient to address long-term challenges such as water scarcity and climate-related pressures.
Looking Ahead
The provincial government has projected an increase in provincial revenues to Rs170 billion and expects to receive Rs771 billion under the National Finance Commission (NFC) Award.
As the budget moves through the legislative process, its impact on ordinary citizens will largely depend on implementation and whether the promised investments in jobs, education, healthcare and public services translate into tangible improvements in living standards for Balochistan’s poor and middle-class families.
