The Khyber Pakhtunkhwa government on Friday proposed a 10% hike in the salaries of public servants amid economic challenges.

Taking lead over the federal government as well as other three provinces, Chief Minister Ali Amin Gandapur-led government unveiled its maiden over Rs1.75 trillion budget for the fiscal year 2024-25.

Presenting the budget in the House, KP Finance Minister Aftab Alam announced a 10% increase each in basic pay of its employees and pensioners.

Similarly, the provincial government announced increasing minimum wages to Rs36,000 from existing Rs32,000.

In addition to pay raise, the provincial government proposed Rs120 billion Annual Development Program (ADP) for the next financial year.

As many as Rs416.30 billion announced under head of development expenditure including Rs120 billion for provincial ADP, Rs24 billion for district ADP, Rs36 billion for merged districts ADP and Rs79.29billion for Accelerated Implementation Program (AIP).

The government proposed Rs12 billion for Ehsas Employment Program, Youth Program and Skills program.

Presenting the budget at floor of the House, the finance minister said that 5,000 new houses would be constructed under Ehsas Own House Program for which Rs3 billion announced.

Likewise, Rs10 billion earmarked for CRBC Lift Canal to irrigate three lakh acres lands, launching of Tank, Chodran and Daraban dams, allocation of Rs26.90 billion for wheat procurement, Rs6.50 billion for construction of roads, Rs2.50 billion for emergency works, construction of Dir and DI Khan motorway under public private partnership mode, construction of road to link DI Khan with Hakla motorway and 470 megawatt Lower Spat Gah project.

— Additional input from APP