The Khyber Pakhtunkhwa (KP) government’s approval of a Rs157 billion surplus in its 2025-26 budget has sparked significant controversy, with PTI founder and former Prime Minister Imran Khan expressing strong disapproval from Adiala Jail. Khan has urged that the surplus be utilized for public welfare rather than complying with International Monetary Fund (IMF) expectations.

Khan believes the federal government is pushing the country deeper into debt and insists that surplus funds should be allocated to essential services such as education, healthcare, and environmental projects. He expressed these concerns after learning that the budget was passed without his consultation, leading to unrest among PTI activists and furthering internal divisions within the party.

Sources within PTI revealed that Khan was misinformed by party insiders, who led him to believe the surplus was solely an IMF-driven decision. In reality, the surplus already existed due to KP’s revenue management and had not been dictated by the IMF. The funds remain under provincial control and are not returned to the federal government.

PTI’s political committee had reportedly agreed on June 22 that the budget must not be passed without Khan’s approval. Despite this consensus, Chief Minister Ali Amin Gandapur proceeded with budget approval on June 24, a move seen by many within the party as a violation of Khan’s clear directives. This decision triggered backlash, with many labeling the CM and other MPAs as “traitors” for bypassing party leadership.

Adviser to the CM on Information, Muhammad Ali Saif, acknowledged that Khan had expressed dissatisfaction but clarified that Khan’s focus was on maximizing development spending. Meanwhile, CM Gandapur defended the early approval, citing fears of a constitutional crisis and alleged attempts by the federal government to impose Governor’s Rule in the province.

Finance Adviser Muzzammil Aslam further clarified that the surplus is based on existing provincial savings and future estimates. He emphasized that the funds are not transferred to the federal government but reserved for debt servicing and development projects. He reaffirmed that the budget aligns with Khan’s broader economic vision and remains flexible to future adjustments as per Khan’s input.

Former provincial finance minister Taimur Saleem Jhagra and PTI leaders, including Dr Shahbaz Gill, admitted procedural flaws and a lack of consultation, indicating a breakdown in communication between party leadership and provincial authorities.

As KP braces for fiscal challenges, internal PTI rifts and questions about leadership and transparency continue to deepen. With negotiations ongoing with the IMF and public expectations rising, the fate of the Rs157 billion surplus and its potential for development hangs in a delicate balance.