Khyber Pakhtunkhwa Province

Abbottabad: [ReNews Pakistan]
The long awaited Abbottabad Interchange project has received fresh approval following a detailed review by the Central Development Working Party (CDWP), removing a key hurdle that had delayed the scheme and paving the way for construction work to commence in the near future.
According to former Federal Minister Murtaza Javed Abbasi, the interchange was originally announced by Prime Minister Shehbaz Sharif in 2022 as part of efforts to improve road infrastructure and strengthen connectivity in the Hazara region. The project was subsequently tendered in 2023, but progress stalled due to a substantial increase in land acquisition costs.
Abbasi said that the federal government had already released PKR 600 million for the project. Initially, the acquisition of 119 kanals of land required for the interchange was estimated to cost around PKR 115 million. However, a revised assessment by the district administration increased the acquisition cost to approximately PKR 810 million, creating a significant funding gap and necessitating a review by the CDWP.
Following the review process, the project was granted fresh approval by the National Highway Authority’s (NHA) Departmental Development Committee. The approval is expected to accelerate implementation and allow authorities to proceed with the next phase of development.
Officials believe the interchange will play a crucial role in improving traffic management in Abbottabad, reducing congestion on key routes, and enhancing access for commuters and transporters traveling through the region. The project is also expected to benefit neighboring districts, including Mansehra and Haripur, by providing smoother and more efficient road connectivity.
Abbasi expressed optimism that construction activities would begin shortly after the completion of remaining administrative formalities. He added that the project’s inauguration is likely to be carried out by Prime Minister Shehbaz Sharif once work progresses to a suitable stage.
The Abbottabad Interchange is considered an important infrastructure initiative for the Hazara division, with stakeholders hoping it will support economic activity, facilitate regional mobility, and contribute to long-term transportation development in northern Khyber Pakhtunkhwa.

Peshawar | ReNews Pakistan
The Khyber Pakhtunkhwa government has announced a Rs 2.17 trillion budget for the fiscal year 2026 27, placing a major emphasis on development projects, urban improvement, infrastructure expansion and regional uplift across the province.
Presenting the budget in the KP Assembly, Chief Minister Sohail Afridi said the provincial government has allocated Rs 524 billion for the Annual Development Programme, making development spending one of the central pillars of the new financial plan. The budget also sets aside Rs 35 billion for merged tribal districts, reflecting the government’s focus on infrastructure and public service delivery in previously underdeveloped areas.
A major urban development component of the budget is the Rs 36 billion allocation for the Peshawar Rehabilitation Programme. The initiative is expected to support improvement of civic infrastructure, public spaces, roads and urban services in the provincial capital.
The government has also earmarked Rs 7.5 billion for the Peshawar Bus Rapid Transit project, indicating continued financial support for mass transit and urban mobility. In addition, Rs 4 billion has been allocated for the Khushhal Hazara Programme, aimed at regional development in Hazara division.
The budget proposes Rs 42 billion for the energy sector, a key area linked with industrial growth, real estate development and long-term investment activity. The transport sector has been allocated Rs 14 billion, while local government has received Rs 90 billion, which may support municipal services, local infrastructure and development schemes at district level.
The agriculture department has been allocated Rs. 29 billion, while Rs 2 billion has been proposed for the Ehsaas Kisan Programme. These allocations are expected to support rural development and strengthen the economic base of agricultural areas.
The budget also includes Rs 2.5 billion for an electric bikes and rickshaws scheme, aimed at promoting cleaner and more affordable transport options in urban and semi-urban areas.
The proposed budget will now be debated in the KP Assembly before being put to a vote for approval.

Peshawar | ReNews Pakistan
The Federal Budget 2026-27 has generated cautious optimism among property dealers, contractors, builders and construction sector stakeholders across Khyber Pakhtunkhwa, as proposed tax relief measures are expected to revive real estate activity and encourage fresh investment in the sector.
Among the key budget proposals welcomed by the property and construction community is the reduction in withholding tax on property transactions for tax filers.
According to the proposals, withholding tax on property purchases would be reduced from 2.5 percent to 1.5 percent, while tax on property sales would be cut from 5.5 percent to 2.75 percent.
Builders and contractors in the province believe these measures could help restore confidence in the property market, which has faced pressure in recent years due to higher taxation, inflation, reduced purchasing power and slow investment activity.
In Nowshera, contractors Wisal Khan and Irshad Khan welcomed the proposed reduction in property-related taxes, saying the move would make property transactions more affordable for buyers and sellers.
“These reductions will make property transactions easier and encourage investment in the real estate sector,” said Wisal Khan, chief executive of a private construction firm.
He said that when the property market gains momentum, its benefits are not limited to builders and developers alone. The construction sector is directly linked with several allied industries, including cement, steel, pipes, sanitary fittings, electrical goods, furniture, paint, glass, tiles and transport.
“When construction activity increases, dozens of industries benefit, and employment opportunities are created for skilled and unskilled workers,” he added.
Stakeholders said the proposed tax relief could help bring back investors who had remained cautious due to higher transaction costs and uncertainty in the market. They believe that lower taxes may increase the number of documented property transactions and support formal economic activity.
Real estate experts said that the property sector has long played an important role in Pakistan’s economy by generating investment, supporting urban development and creating employment.
In Khyber Pakhtunkhwa, construction activity is also considered important for local markets, especially in Peshawar, Nowshera, Mardan, Swat, Abbottabad, Dera Ismail Khan and other growing urban centres.
Contractors said that any revival in real estate activity would also provide relief to daily wage labourers, masons, electricians, plumbers, carpenters, painters and transport workers who depend heavily on construction projects for income.
Business leaders, however, expressed a more cautious view. While appreciating some relief measures, representatives of the Sarhad Chamber of Commerce and Industry said the budget should include stronger steps to promote investment, industrial growth and private sector confidence.
SCCI President Junaid Altaf welcomed the government’s decision to abolish the Super Tax and privatize loss-making state enterprises but said that ambitious revenue and growth targets would require practical policies and consistent implementation.
Former SCCI President Zahidullah Shinwari also said that unemployment and industrial slowdown require focused attention, adding that investment-friendly policies are necessary to support long-term economic growth.
Despite these reservations, the overall reaction from property and construction stakeholders remained positive. Many believe that the proposed reduction in property taxes could mark an important step toward reviving market activity, encouraging investment and supporting job creation.
As the budget proposals move toward implementation, real estate and construction sector representatives said the real test would be whether the announced relief is applied effectively and whether it succeeds in bringing genuine momentum back to the property market.
For now, the Federal Budget 2026-27 has offered renewed hope to builders, contractors, investors and allied industries across Khyber Pakhtunkhwa, with expectations that lower property taxes may help revive construction activity and support broader economic stability.