MUZAFFARABAD (Kashmir English): The Azad Jammu and Kashmir government, under the leadership of Prime Minister Faisal Mumtaz Rathore, on Monday presented a total budget of Rs286 billion for the fiscal year 2026-27.
The Finance Minister Chaudhry Qasim Majeed presented the budget during the AJK Legislative Assembly session, chaired by Speaker Chaudhry Latif Akbar.
According to the budget speech, Rs 250 billion is allocated for non-development expenditure and Rs 36 billion for development spending in the proposed budget.
As per details, the budget proposals include Rs 900 million for the agriculture and livestock sector, Rs 100 million for civil defence and disaster management, Rs 190 million for development institutions, and Rs 3 billion for the education sector.
The budget also proposes Rs 3 billion for local government and rural development, Rs 1 billion for physical planning and housing, Rs 3 billion for energy and water resources, and Rs 14 billion for communication and construction projects.
Under the proposed development budget, 31% of the allocation has been earmarked for the social sector, 12% for the productive sector, and 57% for infrastructure development.
The government has also included the Education Package 2026 in the budget, allocating Rs 2.979 billion for elementary and secondary education initiatives.
Increase in salaries, pensions
In his budget speech, Finance Minister Chaudhry Qasim announced the increase in salaries and pensions of government employees, adding that employees are the backbone of any government.
“The government is making every effort to improve the economic conditions of its employees despite its financial difficulties,” he said.
In line with the federal government’s increase in salaries and pensions, the Azad Kashmir government has also decided to increase 7 per cent in salaries and pensions for government employees, Majeed added.
Key Details of AJK Budget 2026-27
- The total budget has been set at Rs 286 billion
- Development budget allocated Rs 36 billion
- The normal budget allocated Rs 250 billion
- More than Rs 57 billion proposed for education
- 250 billion proposed for health
- 7 percent increase for salaries and pensions
