KP Revenue Soars. 200 percent Growth in Mineral Royalties Reflects Strong Financial Reforms

Khyber-Pakhtunkhwa has witnessed a staggering threefold surge in mineral royalty revenues this fiscal year, highlighting substantial strides in economic reform and revenue enhancement.

This development was unveiled in a high-level meeting led by Chief Secretary Shahab Ali Shah, where the Finance Department provided insights into budget structuring, resource allocation, and sectoral expenditures.

Key financial figures, including salary and pension forecasts, were evaluated by the Secretary of Finance and senior officials, with deliberations on the forthcoming provincial budget.

With the enactment of over 50 new fiscal measures under the latest finance bill, the province has secured an additional Rs14 billion in revenue, marking a 50% year-over-year increase. Revenue collection efficiency has also seen a dramatic improvement, with 90.7% of targets met in the first half of FY25—far exceeding the previous year’s 66%.

Mineral royalties alone have tripled, with expectations for continued growth. The province now projects Rs100 billion in internally generated revenue. Additionally, development expenditures have expanded by 35%, while collections from the mining sector have reached Rs5.4 billion.

Stressing the importance of proactive financial planning, the Chief Secretary instructed all departments to assess sector-specific funding requirements ahead of the budget cycle. A strategic roadmap for governance and fiscal reform was also introduced, emphasizing greater transparency, digital integration, and automated financial processes to enhance accountability. To further reinforce financial oversight, officials announced the implementation of a two-year rotation policy for key financial roles.