PESHAWAR:Khyber Pakhtunkhwa’s KP Finance Advisor, Muzammil Aslam, has formally requested the federal government to release Rs42 billion in overdue funds owed to the province under the National Finance Commission (NFC) Award.
In a letter addressed to the Finance Division, Aslam highlighted that from February to April 2025, the Federal Board of Revenue (FBR) collected Rs9,300 billion, of which KP’s rightful share was Rs849 billion. However, the province received only Rs803 billion, leaving a shortfall of Rs42 billion after accounting for deductions from the divisible pool .
Aslam emphasized that despite repeated appeals, the federal government has failed to disburse the pending amount, exacerbating KP’s financial challenges. He warned that the delay is severely impacting the province’s ability to meet its budgetary obligations, including development projects and public services .
The advisor reiterated that the withheld funds are part of KP’s constitutional entitlement under the NFC Award and urged the federal government to expedite the payment to alleviate the province’s fiscal strain. He stressed that immediate action is necessary to prevent further disruption to KP’s economy and governance .
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This latest demand adds to KP’s longstanding grievances over unpaid dues, including Net Hydel Profit (NHP) arrears and delayed allocations for the merged tribal districts. The province has repeatedly called for an NFC meeting to revise the award and ensure fair resource distribution, but the federal government has yet to respond .
KP’s financial struggles come despite the province’s efforts to reduce its debt and improve fiscal management, including depositing Rs30 billion into a debt repayment fund . However, without federal cooperation, the province warns that its economic stability remains at risk.
The letter concludes with an appeal for a “positive response”to resolve the crisis and uphold constitutional obligations to the province.
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