Peshawar
\nAdvisor to the Chief Minister Khyber Pakhtunkhwa for Finance and Inter-Provincial Coordination, Muzzammil Aslam, has said that the province\u2019s economic performance is directly influenced by the federal government\u2019s policies, which have remained unsatisfactory over the past three years.
\nSpeaking at a post-budget press briefing in Peshawar, he stated that the national growth rate of 2.7% has been deemed disappointing by both economists and media analysts, adding that without improved national growth, economic performance cannot be expected to improve.
\nHe criticized the federal government for completely ignoring Khyber Pakhtunkhwa in its development budget. Out of a national development allocation of Rs. 1,000 billion, only Rs. 550 million were earmarked for Khyber Pakhtunkhwa under the Public Sector Development Program (PSDP).
\n\u201cThe federal government has two key responsibilities toward the province\u2014PSDP funding and development allocations for the merged districts\u2014yet both have been neglected,\u201d he added.
\nMuzzammil Aslam pointed out that while the Federally Administered Tribal Areas (FATA) have been administratively merged into Khyber Pakhtunkhwa, financial integration has not taken place.
\n\u201cThe federal government released only Rs. 66 billion for the merged districts\u2019 recurring expenses, whereas the province had to contribute an additional Rs. 47 billion from its own resources. Furthermore, Rs. 20 billion were spent from the province funds in AIP in the absence of federal funds,\u201d he explained.
\nHighlighting the federal government\u2019s shortfall in tax collection, Aslam said that a Rs. 1,000 billion shortfall at the national level resulted in a Rs. 90 billion revenue loss for Khyber Pakhtunkhwa. However, despite these setbacks, the provincial government initiated significant financial reforms, including the establishment of a Debt Management Fund, where Rs. 150 billion have been allocated.
\nResponding to criticism regarding provincial borrowing, the advisor clarified that Khyber Pakhtunkhwa\u2019s total debt stands at Rs. 709 billion, which is proportionate to the size of its economy. \u201cNo new debt has been taken; what we received are disbursements of previously agreed loans. Future borrowing will only be undertaken for mega projects and will not be diverted elsewhere,\u201d he assured.
\nOn the Sehat Card program, he shared that while the actual expenditure stood at Rs. 24 billion, Rs. 53 billion have been allocated in the new budget to ensure its smooth continuation. Presenting the budget figures, he said that the total revenue target for FY 2025\u201326 is Rs. 2,119 billion\u201421% higher than the previous year. Federal transfers are expected to be Rs. 1,506 billion, while the province has set a local revenue target of Rs. 129 billion.
\nTotal expenditure is estimated at Rs. 1,962 billion\u201419% more than the previous year\u2014with current expenditure at Rs. 1,415 billion, including Rs. 1,255 billion for settled districts and Rs. 160 billion for the merged districts.
\nSpeaking on the provincial annual development program, the finance advisor praised Chief Minister Ali Amin Gandapur\u2019s leadership. He said the CM conducted extensive consultations at district, divisional, and constituency levels with public representatives to identify priority projects, resulting in the most comprehensive planning process in the province\u2019s history.
\nA record Rs. 547 billion has been allocated for development, which is 31% more than the previous year. Of this, Rs. 39.6 billion has been earmarked for the merged districts.
\nReflecting on the government\u2019s performance over the past year, Aslam said that despite initial skepticism and concerns regarding the continuity of flagship programs such as the Sehat Card and timely salary disbursement, the government delivered on its promises. \u201cMore than 400 under-construction projects in the settled districts are being completed with enhanced development funds,\u201d he said.
\nRegarding consultations with PTI founding chairman Imran Khan, Aslam said that without his input, the KP budget would remain incomplete.
\n\u201cIt is vital to seek his guidance, as I was part of financial consultations during his federal tenure and continue to focus solely on the province\u2019s financial well-being,\u201d he noted.
\nConcluding, Muzzammil Aslam credited the Chief Minister\u2019s leadership for effectively advocating Khyber Pakhtunkhwa\u2019s concerns at the federal level. He mentioned that a Council of Common Interests meeting is expected this June, with the issue of Net Hydel Profit on the agenda. The federal government has also promised to announce the 11th NFC Award. Moreover, the National Economic Council has authorized Rs. 70 billion this month for the ADP and AIP of the merged districts\u2014a development he termed encouraging.<\/p>\n","protected":false},"excerpt":{"rendered":"
Peshawar Advisor to the Chief Minister Khyber Pakhtunkhwa for Finance and Inter-Provincial Coordination, Muzzammil Aslam, has said that the province\u2019s economic performance is directly influenced by the federal government\u2019s policies, which have remained unsatisfactory over the past three years. Speaking at a post-budget press briefing in Peshawar, he stated that the national growth rate of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-484232","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-top-news"},"yoast_head":"\n