KP government transfers Rs 30 billion to debt management fund: Muzzammil Aslam
Peshawar
Advisor to the Chief Minister Khyber Pakhtunkhwa for Finance and Interprovincial Coordination, Muzammil Aslam, underscored Khyber Pakhtunkhwa’s historic achievement in becoming the first province to actively reduce its debt. The provincial government has deposited an substantial amount of PKR 30 billion into the Debt Management Fund, with plans to contribute an additional PKR. 30–40 billion, depending on the financial landscape.
In a video statement issued on Tuesday, Muzammil Aslam elaborated that the Debt Management Fund can accommodate up to 10% of KP’s total debt of PKR. 725 billion. The province has already initiated transfers and remains committed to reducing its financial liabilities, setting a benchmark for other provinces and the Federal Government.
Mr. Muzzammil highlighted KP’s recent key accomplishments, including the allocation of Rs. 20 billion each to pension and gratuity funds over the past six months, alongside generating Rs. 3–4 billion in profits through efficient fund management. Additionally, KP has secured three months’ worth of advance salary funds, marking a significant improvement from past challenges in salary disbursements.
KP Advisor for Finance also emphasized that the KP Government is steadfast in its goal to eliminate debt and stabilize the economy, aligning with the vision of PTI founder Imran Khan and under the leadership of Chief Minister Ali Amin Khan Gandapur.
KP Advisor on Finance criticized the Federal Government for its unsustainable financial policies, noting that Pakistan’s national debt has surged to Rs. 70,400 billion. He revealed that the federal government borrowed PKR. 1,248 billion debt in the November 2024 alone, surpassing KP’s total debt of Rs. 725 billion accumulated over 77 years. He further highlighted that the country’s debt has grown by Rs. 27,000 billion since April 2022.
The Advisor urged the federal government to adopt more responsible fiscal practices, drawing lessons from KP’s success in debt reduction and financial stewardship.
