DLP Report
ISLAMABAD
Adviser to the Khyber Pakhtunkhwa Chief Minister on Finance, Muzzammil Aslam, has criticised federal fiscal management, saying delays in the federal budget stem from unmet revenue commitments and disagreements within the ruling coalition on expenditure priorities.
Addressing a press conference at Pakhtunkhwa House in Islamabad on Wednesday, he claimed the federal government was struggling to meet revenue targets agreed with the International Monetary Fund (IMF), while coalition partners were reluctant to support proposed expenditure measures.
Mr Aslam claimed that during a recent meeting, the federal government asked provinces to generate an additional Rs430 billion in tax revenue. He said provinces had limited taxation authority, mainly restricted to services, while proposals for agriculture and property taxation were also discussed.
He said data shared during the meeting showed property tax collection in major cities, with Peshawar reportedly ranking highest, followed by Karachi and Lahore, while several industrial centres were not included in the comparison.
The finance adviser said KP was initially asked to generate Rs35 billion in additional taxes, but the revised target was later increased to between Rs60 billion and Rs65 billion.
He said the federal government had “failed to meet its tax collection targets” and was now projecting revenues of Rs13 trillion, warning that this would likely result in increased taxation pressure on the public. He added that salaried individuals were already bearing multiple taxes on income, fuel, electricity and other goods and services.
Mr Aslam further said that under IMF recommendations, the electricity subsidy for consumers using less than 200 units was being phased out, which would add to the financial burden on low-income households.
He also said that due to international developments and rising fertiliser prices, provinces had been asked to provide subsidies in the upcoming budget, warning that higher input costs could push up food prices.
Referring to wheat procurement, he said the federal government had set a purchase rate of Rs3,500 per maund, but provinces had not procured wheat as market prices were higher. He also alleged that wheat prices were highest in Peshawar due to supply disruptions and unofficial charges at checkpoints.
