DLP Report
PESHAWAR
Advisor to Chief Minister Khyber Pakhtunkhwa on Finance, Muzzammil Aslam, claimed that the province’s financial position is the strongest it has been in 76 years.
However, he noted that the federal government’s tax collection shortfall of 98 billion rupees in August will impact provincial revenues.
Aslam stated that Khyber Pakhtunkhwa will face a reduction of 8.5 billion rupees, while Punjab and Sindh will lose 29 billion rupees and 16 billion rupees, respectively. Despite this challenge, the advisor expressed confidence in the province’s financial resilience, citing its robust financial position.
These views were expressed by Advisor Finance and Inter Provincial Coordination Khyber Pakhtunkhwa Muzamil Aslam while addressing a press conference in Civil Secretariat Peshawar here on Tuesday.
Finance Adviser Muzammil Aslam said that Federal budgets are not sustainable, they just give numbers to the media that are later proven wrong. In the last 20 years, not a single federal budget has come out right and the provinces make the budget by looking at the federal tax collection targets.
The KP government gave the provincial budget earlier because we thought that the tax targets of 11,200 billion rupees would be sustainable this year. On the instructions of the IMF, the federal government announced a tax target of 12,900 billion rupees, which FBR is also not confident to achieve.
Adviser Finance KP while addressing the press conference said that the mini budgets have already started from the first month of fiscal year. Now the micro budgets will come on regular intervals.
The government has collected seven billion rupees in taxes in the first two months with an increase of 44 percent, and this is at a time when the economy is faltering. He said that we reduced sales tax from 15 percent to 13 percent while property taxes were halved, he added.
Muzammil Aslam said that when Shahbaz Sharif and Ishaq Dar failed, Imran Khan had given the IMF program guarantee before his arrest, so the IMF 9 months standby program was granted. Now the IMF program has been signed in July and since then there is no reports of Board meetings.
Mr. Muzammil Aslam said the general impression in the media is that at present the capital of Pakistan is not Islamabad but at Lahore and decisions are being made in Lahore then those in Islamabad.
Advisor on Finance said that After Punjab’s government power subsidy for 2 months was announced, the Prime Minister advised the provinces to do the same, which is against IMF MoU signed by provinces.
Advisor Finance said It is coming in the news that the federal government has made a plan that funds will be deducted from the provinces to provide electricity subsidy of 2800 billion rupees, in which 231 billion rupees will be deducted from Khyber Pakhtunkhwa. With this amount only 6 rupees unit relief is given to the whole of Pakistan. We believe for 6 rupees per unit subsidy only 600 billion rupees are needed.
Khyber Pakhtunkhwa Finance Adviser Muzzammil Aslam said that the rate of inflation has increased by 36% in one year while saying that inflation has reached single digits.
According to statistics, the price of onion has increased by 144%, the price of vegetables has increased by 57%, the price of pulses by 23% and the price of meat by 21%, Mr. Muzammil Aslam said.
Advisor on Finance said that Prime Minister Shehbaz Sharif is doing injustice to Khyber Pakhtunkhwa due to PTI’s malice. He announced additional funds after terrorism in Balochistan. The Funds will be given from NFC Whereas for provinces affected by terrorism like Khyber Pakhtunkhwa, there are no grants or announcements.
Mr. Muzammil Aslam said that PDM people are saying that PTI is fragmented whereas this fragmented PTI is stronger and more united than PDM and the September 8 PTI rally will prove it.
