The Gilgit-Baltistan cabinet has approved the budget for the 2026-27 fiscal year, with the minimum wage increased from Rs 40,000 to Rs 44,000. The total outlay of the Gilgit-Baltistan budget has been set at Rs 218 billion, including Rs 23 billion for development projects and Rs 28 billion for non-development expenditures.
The federal government’s stabilisation package has also been incorporated into the budget. As part of the government’s efforts to control expenditures, the cabinet has decided to reduce the non-development budgets of all departments by up to 30 per cent. The budget aims to balance development priorities with fiscal discipline while addressing the region’s financial needs.
Chief Minister Amjad Hussain said that despite limited resources, the social sector remains the primary focus of the budget. He said employment opportunities would be created for youth and women, while substantial funds have been allocated to the health, education, and agriculture sectors.
Cabinet increased the minimum wage for both public- and private-sector employees from Rs 40,000 to Rs 44,000 and approved an additional Rs 170 million for the procurement of medicines.
Significant increases were also approved for the Health Endowment Fund and scholarships for meritorious students. The cabinet recommended allocating Rs 50 million for water management initiatives to support the agricultural sector. For the first time in Gilgit-Baltistan, Rs 1 billion has been allocated for social protection.
The cabinet also proposed establishing a Rs 4 billion endowment fund for the social sector. It decided to allocate one per cent of development project funds to a climate fund, with the amount to be deposited into the consolidated account.
The cabinet approved the purchase of hybrid vehicles for government departments, while old and fuel-inefficient government vehicles will be auctioned. It also decided to reduce the “throw-forward” liability to accelerate the pace of development. Equal development funds will be allocated to both government and opposition members in Gilgit-Baltistan.
The chief minister said the government would ensure an equitable distribution of resources and balanced development across the region. He directed authorities to make the PC-1 preparation and tendering processes for development projects transparent, emphasising that development funds must be spent strictly on the projects for which they are allocated.