DLP Report
PESHAWAR
Adviser to the Khyber Pakhtunkhwa Chief Minister on Finance, Muzzammil Aslam, has raised concerns over the federal government’s release of funds to the province, stating that while federal figures cannot be disputed, actual payments made to the province have consistently fallen short of what is due.
In a statement issued here on Saturday, Muzzammil Aslam said that approximately Rs4 trillion was payable to the province, including Net Hydel Profit (NHP), straight transfers, and dues of the merged districts.
He highlighted delays in NHP payments, the exclusion of the windfall levy from straight transfers, and non-inclusion of federal excise duties on petroleum and tobacco, despite agriculture being devolved to provinces.
The Adviser further noted that even after the merger of FATA, the Seventh National Finance Commission (NFC) Award has not been updated. He said merged districts continue to receive a special grant that was lower than that provided to other regions like Gilgit-Baltistan and Kashmir.
Full allocations for the merged districts were only received in 2024–25, while half of the promised additional 3 percent share, amounting to Rs100 billion in development funds pledged in 2018, has yet to be provided, he added.
Under the Accelerated Implementation Programme (AIP), only Rs168 billion of the allocated Rs700 billion has been released. The Adviser added that more than Rs50 billion less has been allocated this year for the merged districts’ current expenditures.
Mr Aslam estimated that due to the non-implementation of the Seventh NFC Award, KP has received Rs1,375 billion less since 2018–19, and no funds from the promised Rs 17 billion for internally displaced persons (IDPs) have been released.
Muzzammil Aslam said the provincial government has spent over Rs 11 billion from its own budget on IDPs and urged the federal government to provide complete data on fund releases to all provinces for transparency.
The CM aide on finance also called for disclosure of kilometers of roads constructed by the National Highway Authority in each province, details of electricity and gas subsidies, and allocations under the Public Sector Development Programme (PSDP) since 2010.
