In a press conference held in Peshawar, Sikandar Hayat Khan Sherpao strongly criticized both the federal and Khyber Pakhtunkhwa budgets, terming them unrealistic and lacking public welfare priorities.

He said that more than 80% of Khyber Pakhtunkhwa’s resources come from the federal government, while the federal budget of 18 trillion rupees reflects fiscal mismanagement. He added that a major portion of the budget is allocated for debt servicing, with around 8 trillion rupees set aside for loans, while only 1 trillion rupees has been allocated for development.

Sherpao said the federal government’s projected 4% growth rate is unrealistic, while the agriculture sector has been completely ignored. He noted that farmers are unable to even cover their production costs.

He further criticized the government’s tax target of 15 trillion rupees for the new fiscal year, calling it impractical under current economic conditions. According to him, neither the existing sectors nor investors have the capacity to bear additional tax burdens, and revenue targets can only be achieved by expanding the tax base and increasing investment.

He also questioned the export target of 100 billion dollars, saying that without cheap electricity and affordable raw materials, increasing production and exports is not possible.

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The National Awami Party leader stated that structural reforms exist only on paper and are not visible in practice, adding that policies are being made in favor of certain “mafias,” harming both the country and Khyber Pakhtunkhwa.

Regarding the provincial budget, he said it is not only deficit-ridden but also lacks vision. He said the province is facing a deficit of 151 billion rupees this fiscal year, while it will receive 90 billion rupees less from the federal divisible pool.

He added that overall, Khyber Pakhtunkhwa may face a shortfall of more than 80 billion rupees, while provincial revenue targets are also unlikely to be achieved, potentially resulting in a total deficit exceeding 200 billion rupees.

Sherpao also expressed concern over the rollback of policies in merged tribal districts, saying it would be harmful for the country. He demanded that excise duty be given to Khyber Pakhtunkhwa and that the province should receive its rightful share of gas and electricity.

He urged the government to focus on public welfare instead of political interests, improve law and order, and take concrete steps for human development and technological progress.