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Pakistan Observer · Jun 21, 2026, 1:33 AM · Also reported by 4 other sources

Why this matters: local context for readers following news across Pakistan and the region.

THE budget presented for the next fiscal year in Khyber Pakhtunkhwa carries several noteworthy and positive elements that deserve recognition. One of the most encouraging aspects of the budget is its strong allocation toward key public service sectors. Health has been allocated Rs334 billion, while education has received Rs468 billion, the largest share among all sectors. Law and order has been allocated Rs191 billion. These three sectors are the backbone of any functioning society and sustained investment in them is not only necessary but also a step in the right direction for long-term stability and human development. In particular, prioritizing education strengthens future human capital, health investment improves public wellbeing and productivity and security spending is essential for maintaining an environment conducive to economic activity and social harmony. However, the effectiveness of these allocations will ultimately depend on implementation. The Rs191 billion allocated for law and order is significant, but it must be used efficiently and transparently to build the operational and institutional capacity of law enforcement agencies. The province is worst affected by terrorism and in recent times, a surge has been seen in terror acts especially in tribal districts because of terror hideouts across the border in Afghanistan. Hence there is a dire and serious need to take the requisite steps to deal with this menace effectively. It is important that investment in modern equipment, training, counter-terror capabilities and institutional reform translate into measurable improvements on the ground, rather than remaining confined to budgetary figures. Without strong execution, even substantial allocations risk being diluted in impact. Then the decision to raise the minimum monthly wage to Rs45,000 is a welcome step. However the proposed 7 percent increase in salaries and pensions of government employees appears insufficient given current inflationary trends. In r

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