Muzaffarabad Diary: PaJK Budget 2025–26 Lacks Backbone

The unveiling of the 2025–26 budget in Pakistan-administered Jammu and Kashmir (PaJK) has stirred controversy, criticism, and confusion, not for what it includes, but for what it unmistakably lacks: democratic legitimacy, structural reform, and a clear developmental direction.

Valued at 31,000 crore Pakistan rupees and presented as a “tax-free, people-friendly” document, the budget has once again laid bare the chronic deficiencies in the region’s governance and planning.

Finance Minister Abdul Majid Khan tabled the budget earlier this month. Though approved by the cabinet, it awaits formal consent from the legislative assembly. It was only tabled in the House. This procedural bypass triggered a strong backlash from the opposition, fuelling concerns about the shrinking space for democratic deliberation in the region.

The budget’s rushed approval led to a walkout by opposition lawmakers. Former Prime Minister Raja Farooq Haider was at the forefront of criticism, questioning the erosion of parliamentary oversight.

“Why the rush to approve the budget? If debate is not allowed, why not just let the cabinet approve it unilaterally?” he asked, highlighting the creeping irrelevance of elected institutions.

Haider went further, hinting at the shadowy influence of intelligence agencies in the budgetary process. “Is it their job to approve budgets?” he asked, drawing attention to the long-standing allegations of interference by unelected actors in PaJK’s governance.

The episode reflects a deeper malaise, where democratic institutions exist in form but are increasingly hollowed out in function.

At first glance, the 31,000 crore Pakistan rupees budget appears expansive, and no new taxes have been imposed. Yet a closer look reveals a structure heavily skewed towards non-development expenditure. Only 4,900 crore Pakistan rupees—just under 16 per cent—is allocated for development projects. A dominant 26,100 crore Pakistan rupees is directed towards salaries, pensions, subsidies, and administrative overheads.

The government expects to generate 10,000 crore Pakistan rupees from its own resources, while federal grants from Islamabad are projected at 15,000 crore Pakistan rupees. The remaining gap is expected to be managed through borrowing and other sources, though no clear roadmap is provided.

The previous year’s budget projected 26,400 crore Pakistan rupees in spending, but fell short by nearly 4,000 crore Pakistan rupees. No public explanation has been offered for this significant shortfall.

Education: Quantity Without Quality

Education receives the highest non-development allocation at 5,278 crore Pakistan rupees, but just 500 crore Pakistan rupees is earmarked for developmental upgrades. The pattern reflects a continued emphasis on salaries over systemic improvement.

According to the Annual Status of Education Report 2023, only 23 per cent of public schools in PaJK meet basic infrastructure standards, compared to 54 per cent across Pakistan. Many schools damaged during the 2005 earthquake remain unreconstructed, while public school enrolment remains under 40 per cent.

The lack of confidence in the system is evident in the behaviour of government-employed teachers, many of whom send their own children to private schools—a silent indictment of the sector they serve.

In higher education, the picture is similarly bleak. While the region boasts five universities and three medical colleges, quality assurance is virtually non-existent. Sub-campuses have proliferated without proper faculty or infrastructure. Political favouritism in hiring and a lack of standardisation continue to erode the credibility of higher education institutions.

The health sector has been allocated 3,227 crore Pakistan rupees, of which more than 2,600 crore Pakistan rupees will go towards staff salaries and administration. Despite these large allocations, the region still lacks a single fully equipped hospital.

Critical patients are routinely referred to facilities in Islamabad or Rawalpindi. The recently introduced Sehat Card, with a budget of 200 crore Pakistan rupees, is largely symbolic—it can only be used in hospitals located in Pakistan proper, not within PaJK itself.

The absence of local, functional healthcare infrastructure raises fundamental questions about the government’s priorities. Ideally, the region’s three medical colleges should be linked to well-equipped teaching hospitals that serve both public health and academic needs. That, however, remains a distant dream.

Environmental degradation continues unchecked despite the formal existence of an Environmental Protection Agency (EPA). The EPA remains toothless, its recommendations regularly ignored.

During the construction of the Neelum–Jhelum Hydropower Project, the diversion of the river led to a documented rise of over 3°C in Muzaffarabad’s temperature. Suggestions to mitigate the impact, such as creating artificial lakes, were summarily dismissed.

Deforestation, indiscriminate waste dumping, and a lack of sewage treatment further compound the crisis. Many areas still lack access to clean drinking water. The government’s failure to implement cost-effective solutions, such as basic water filtration plants, reflects broader administrative inertia.

Land Reforms: Still in the Wilderness

Land management in PaJK remains chaotic. The absence of a digitised land record system fuels ongoing disputes involving Khalsa Sarkar (state-owned) lands, shamlat (community) lands, and individual ownership. These disputes clog the courts, disrupt development, and perpetuate inequality.

A transparent, digital land management system is essential to bring clarity, reduce litigation, and enable more efficient land use—yet successive governments have shied away from undertaking this foundational reform.

PaJK is facing an acute employment crisis, driven by the lack of industrialisation and economic diversification. Departments such as Small Industries, Fisheries, and Sericulture exist in name only, often limited to ceremonial participation in public exhibitions with no tangible impact on livelihoods.

Public sector hiring is marred by ad-hocism and political interference. Even when appointments are made through merit-based channels such as the Public Service Commission or National Testing Service, candidates often find themselves caught in prolonged legal proceedings. Many lose their eligibility due to age restrictions before a verdict is ever reached.

The problem is compounded by stark gender disparities. Despite improvements in female education and health outcomes, women remain largely excluded from the workforce due to a lack of inclusive policies, institutional support, and safe working environments.

Connectivity: A Fragmented Region

Nearly eight decades after it came under Pakistani administration, PaJK still lacks a cohesive internal road network. There is no major highway connecting all ten districts. Residents in Mirpur, Bhimber, and Kotli must travel via Rawalpindi to reach Muzaffarabad. Similarly, those in the north must pass through Rawalpindi to access the southern districts.

This lack of internal connectivity fosters regional alienation, particularly in districts like Mirpur and Bhimber. Urban planning is largely absent, resulting in unregulated construction that encroaches on green spaces and undermines environmental resilience.

The absence of a master urban development plan across the region contributes to unequal access to healthcare, sanitation, and housing.

Since 1947, PaJK’s administrative map has grown from 2.5 to 10 districts. But this expansion has not brought about better service delivery. Instead, it has ballooned the size of the bureaucracy without improving efficiency or transparency.

The government continues to rely on outdated systems and a patronage-based administrative culture. Without structural reform—including digitisation, accountability mechanisms, and performance-based incentives—the machinery of state will remain sluggish and opaque.

In conclusion, the 2025–26 budget for Pakistan-administered Jammu and Kashmir repeats a familiar cycle: large financial allocations, limited scrutiny, and a lack of transformative vision. While marketed as a “tax-free” (no new tax) and “people-focused” plan, it is overwhelmingly weighted towards recurrent expenses rather than long-term development.

Without bold structural reforms—ranging from fiscal discipline and digital transparency to inclusive planning and governance overhaul—this budget, like its predecessors, risks becoming another paper promise.

Until then, the gulf between political rhetoric and public reality will only widen, leaving the region’s youth, environment, and institutions trapped in a cycle of stagnation and missed opportunity.