PESHAWAR
Chief Minister Mahmood Khan has conditionally signed Memorandum of Understanding (MoU) regarding the fiscal responsibility of the federal and provincial government required under the economic bailout agreement with the International Monetary Fund (IMF).
Minister for Finance and Health Taimur Saleem Jhagrha, while tweeting regarding federal-provincial financial matters, has revealed that Chidf Minister Mahmood Khan has conditionally signed MoU on the IMF agreement.
Earlier a week, the provincial government had decided not sign the MoU and decided to contact the federal government for its demands which include the transfer of ‘Federal Sehat Sahulat Programme for tribal area’ and funds for tribal districts developments funds.
The most important issue the KP government took up before signing the MoU was the regular payment of net hydel profit.
The Tweet reads “The signing followed a meeting with Miftah Ismail after which the federal government confirmed in writing that it will now solve KP’s issues “at the earliest” Minister finance said on Twitter.
It said “CM Mahmood Khan approved the signing of the fiscal responsibility MoU despite our political differences”.
According to details, CM MahmoodKhan authorized Secretary Finance to sign the MoU subject to conditionality to be resolved.
KP’s conditions are expressed in a letter accompanying the MoU and include resolving ex FATA’s 21 billion budget deficit, the transfer of 5 billion Sehat Card financing, and a budgetary allocation for TDPs. It also includes the immediate resumption of regular NHP on a monthly basis, 60 billion a month.
Finance Minister Taimur Jhagra has said also asked for the immediate resumption of the National Finance Commission so a permanent resolution could be found for the funding of ex-FATA, & the implementation of Articles 158 and 161 of the constitution with regards to gas, oil, and hydropower, as well as a resolution of our other issues.
“PMLN’s Punjab reneged on its committed budget within 4 days with an unbudgeted Rs 148 bln subsidy. Each of these demands is legitimate, in the interests of the federation & in particular the smaller provinces; not just KP; even more so given the unbudgeted Rs 148 billion subsidies for Punjab consumers being subsidized both by cheap energy from other provinces & indirect taxes” the tweet reads.
Mr Jhagra said that CM Mahmood Khan has decided to keep the best interest of Pakistan on the top of its priorities, adding that the provincial government was defending the interests of the country, defending the interests of our province, and of the small provinces overall.
He said that the federal government will be made accountable for deviating from its commitments made with the province.
