MUZAFFARABAD (Kashmir English): Azad Kashmir Finance Minister Abdul Majid Khan presented the budget for fiscal year 2025-26 with an outlay of Rs 310 billion, a 30% increase from the previous year.
In his speech, the Finance Minister said that the government has proposed a development programme of Rs49 billion for the next year, keeping in mind its needs for the development of the state.
The budget outlined several key initiatives and allocations aimed at promoting social, economic, and infrastructure development in the region.
Development-oriented budget
Addressing the AJK Legislative Assembly, the finance minister stated that 52% of the funds have been allocated for ongoing projects, while 48% will be utilized for new initiatives.
“By the end of the current fiscal year 2024-25, 76 projects are expected to be completed, with a target of completing 167 projects during the next fiscal year,” he stated.
As per the development budget breakdown, the government has allocated 34% of the financial resources for social sectors, 14% for productive sectors, and 52% for infrastructure development.
The minister said that the government has proposed the resurfacing of 500 kilometers of important roads, and the construction/improvement of 990 kilometers of new connection roads during the next fiscal year.
Furthermore, Rs 5 billion has been allocated to the local government administration to provide basic and urgent needs to the people in rural areas. Around Rs361.2 million has been allocated for the purchase of modern machinery for solid waste management in Muzaffarabad city.
The finance minister further added that Rs1 billion has been allocated for the settlement of refugees residing in different cities, including Pakistan.
In Azad Kashmir, two projects worth more than Rs450 million have been started for the installation of 150 water filtration plants under a grant received from China and the overhauling of 150 water filtration plants already implemented.
In the energy sector, the government has proposed several projects for the uninterrupted supply of electricity, and repair, rehabilitation, and improvement of the grid station.
“Work has started on the projects of 22 MW Jagraon IV and 48 MW Shuntor with the financial support of the Saudi Development Fund,” the finance minister said.
In addition to that, he stated establishment of grid stations in Samahni, Sahansa, Pattaka, and Jabi is underway, while the plan to establish a grid in Haveli/Forward Kahuta is under proposal.
In addition, the projects of 3.2 MW Chamfal and 3.22 MW Nardjiyan Hattian Bala have been completed in the current financial year 2024-25.
Similarly, projects for uninterrupted supply of electricity to the public, repair, rehabilitation and improvement have been approved for the coming financial year.
In addition, work has started on the projects of 22 MW Jagraon IV and 48 MW Shuntor with the financial support of the Saudi Development Fund.
During the coming financial year, 560 HT, 2010 LT poles along with 175 km of line and 345 transformers will be installed and 30,000 new connections will be provided.
The finance minister said that work will continue on the projects of construction of roads and parks within the limits of development institutions Muzaffarabad, Bagh, Rawalakot, Kotli and Mirpur, for which a total provision of Rs. 345 million is proposed.
According to the finance minister, a total of Rs 1.2 billion has been proposed to be allocated under the Public Health Engineering Department in the financial year 2025-26 for the provision of clean drinking water in Azad Jammu and Kashmir.
He told the House that to increase the investigative capacity of the police department, Khidmat Marakaz, Crime Scene Investigation and Safe City projects are being developed.
Also, four armored vehicles have been purchased in the current financial year at a cost of Rs 260 million to increase the efficiency of the police.
He said that IT Excellence Centres are being established in Muzaffarabad, Rawalakot and Mirpur to provide more training facilities to unemployed youth which, he added, could provide self-employment opportunities.
Also, computerization of land records in the tehsils of Azad Kashmir and establishment of telehealth centres in 16 tehsils are being implemented. He said that it is proposed to allocate Rs 1.96 billion during the financial year 2025-26 for the construction of buildings of higher secondary schools and high and middle schools of Azad Kashmir, provision of additional space and facilities.
Three projects are being included for the construction of new buildings of colleges at the divisional level in Azad Kashmir, for which it is proposed to allocate Rs 1.71 billion.
To ensure the provision of quality food to the people, the minister said, three mobile food testing laboratories have been established at the divisional level, which are playing an active role to ensure healthy food to the masses.
During the next financial year, technical training will be provided to about 14,000 youth under the management of Azad Kashmir TEVTA (TEVTA). The Prime Minister’s Youth Loan Program will be used to provide interest-free loans to the youth for business.
It is proposed to release Rs 1 billion in the next financial year 2025-26. The minister said that during the financial year 2025-26, it is also proposed to start a new phase of providing interest-free loans in collaboration with Akhuwat Islamic Microfinance, the value of which has been increased from Rs 750 million to Rs 1 billion.
The finance minister said that during the next financial year, an SDG unit is being established in Azad Kashmir to achieve Sustainable Development Goals (SDGs). He said that for the provision of better medical facilities, it is proposed to allocate Rs 6 billion by significantly increasing the development budget of the Public Health Department.
In addition, it is also proposed to allocate Rs 400 million for the purchase of emergency medicines in various district and tehsil hospitals, according to the minister.
