Khyber Pakhtunkhwa’s Finance Minister, Muzammil Aslam, has warned the federal government to fulfil financial obligations to the province or jeopardize the surplus promised to the International Monetary Fund (IMF).
During an interview with local news channel Geo News, Aslam highlighted discrepancies in funding allocations, particularly noting that the federal government had failed to allocate the promised 400 billion rupees for merged districts, managing only 70 billion instead.
Aslam expressed concerns over receiving these funds by the June 30, 2025, deadline. He stressed the potential challenges in managing the budget surplus if the federal government continues to delay payments. The pending payments include net profits from electricity and royalty payments, which are crucial for the province’s financial stability.
“The slow disbursement of funds by the federal government has persisted for two years,” Aslam stated, pointing out that last year’s revenue estimate stood at 70 billion rupees, with this year’s estimate increased to 93 billion rupees. He criticized the federal government’s reluctance to approve a new National Finance Commission (NFC) award, which is vital for adequately reflecting the province’s financial needs.
Aslam also contrasted the budget increases for Kashmir and Gilgit-Baltistan with the stagnation of funds for tribal districts, underscoring a disparity in financial treatment. He revealed that the provincial government had communicated these discrepancies to the federal authorities, emphasizing the need for fair financial adjustments in line with salary increases.
The finance minister noted that the federal government had opted to defer resolving these financial issues until the next fiscal year, attributing the delay to ongoing negotiations with the IMF. According to Aslam, this deferral strains the provincial government’s ability to meet its financial commitments and maintain economic stability.
