DLP Report
PESHAWAR
A high-level meeting was held on Wednesday to review proposed amendments to the Khyber Pakhtunkhwa Fiscal Responsibility and Debt Management Act, focusing on strengthening fiscal discipline, managing debt prudently, and promoting transparent governance.
According to a statement, the meeting was jointly chaired by provincial minister for law Aftab Alam and Adviser to the Chief Minister on finance Muzammil Aslam.
The meeting was attended by the Secretary Law, officials from the Finance and Law Departments, and other relevant departments. Participants discussed the legal, financial, and administrative implications of the proposed amendments, which aim to restrict borrowing purposes, remove provisions for temporary loans, lower debt servicing limits, increase investment in non-financial assets, and improve investment planning.
Officials said the amendments would also reduce the ceiling on total public debt and guarantees, remove pension liabilities from the debt framework, and regulate borrowing by public sector entities under aggregate limits. Section 11 of the Act is proposed to be amended to establish a Debt Management Office headed by a Director General with professionally recruited staff on fixed-term contracts.
Addressing the meeting, Law Minister Aftab Alam stressed responsible fiscal policies and transparent governance. Adviser Muzammil Aslam said the reforms aim to reduce reliance on borrowing and encourage departments to generate their own resources, helping to curb fiscal deficits and unnecessary expenditures.
The meeting concluded that consultations with all relevant stakeholders would be ensured before finalising the legislation for submission to the provincial cabinet and assembly.
