GB Cabinet Approves Rs218 Billion Budget With Major Welfare Allocations

GILGIT: (Staff Reporter) – The Gilgit-Baltistan Cabinet has unanimously approved a Rs218 billion budget for the fiscal year 2026-27, including Rs23 billion for development and Rs88 billion for non-development expenditures. The overall budget size includes the federal government’s stabilization package.

During the cabinet meeting, the Secretary Finance and Additional Chief Secretary Development briefed members on the major allocations, priorities and key features of the budget.

Chief Minister Amjad Hussain said the budget had been prepared with a focus on social welfare, support for deserving people and creation of employment opportunities, particularly for youth and women.

He said the government had decided to cut non-development expenditure by up to 30 percent across all departments. Additional austerity measures would also be introduced in response to rising fuel prices and the country’s economic challenges.

The chief minister announced that the minimum wage for employees in government and private institutions had been increased from Rs40,000 to Rs44,000. Additional allocations have also been proposed for health, education and agriculture, including Rs170 million more for the purchase of medicines, increased funding for the Health Endowment Fund and scholarships for deserving students.

For agriculture, Rs50 million has been earmarked for water management, while Rs1 billion has been allocated for social protection for the first time in the history of Gilgit-Baltistan. The government has also proposed a Rs4 billion endowment fund for the social sector.

As part of climate-related measures, one percent of funds allocated for development projects will be deducted and deposited into the consolidated account as a climate fund. The government has also decided to purchase hybrid vehicles for various departments and auction old vehicles with high fuel consumption.

Amjad Hussain said the high development throw-forward had slowed the pace of development in the region. He said measures were being taken to reduce the throw-forward, revive the development cycle and speed up ongoing projects.

He added that, for the first time, equal development funds had been allocated to members of both the government and opposition to promote fair distribution of resources and balanced development across Gilgit-Baltistan.

Meanwhile, Chief Minister Amjad Hussain inaugurated a Rs268.715 million waste management project in Gilgit city aimed at improving and modernising the sanitation system.

Under the project, modern machinery has been added to the fleet of the Gilgit Waste Management Company for the first time. The equipment includes two road-washer trucks, three garbage compactor trucks and a fueling vehicle.

The chief minister praised the performance of the Waste Management Company and announced that salaries of all its employees would be brought in line with the government’s minimum wage. He also said workable proposals for introducing a pension system for the employees would be seriously considered.

Separately, Prime Minister Shehbaz Sharif has directed the inclusion of major Gilgit-Baltistan development projects in the federal Public Sector Development Programme (PSDP).

Following recommendations submitted by Chief Minister Amjad Hussain after the prime minister’s visit to Gilgit-Baltistan, the Prime Minister’s Office directed the Ministry of Planning, Development and Special Initiatives and the Federal Secretary Planning to prioritise the inclusion of the 30MW Ghowari Hydropower Project and 4MW Thak Hydropower Project.

The directives also include measures to improve safety on the Jaglot-Skardu Road and reduce traffic accidents.