Get real time updates directly on you device, subscribe now.
Khyber Pakhtunkhwa’s relationship with the federal government has once again come under scrutiny as Chief Minister Sohail Afridi raised serious concerns about unpaid provincial dues amounting to a staggering Rs3 trillion.
Financial Discrimination Claims
Speaking at the inauguration of a beautification project in Peshawar, CM Afridi highlighted that the province continues to face what he termed as “financial discrimination” from the centre. His remarks shed light on several outstanding payment issues that have been pending for years.
Breakdown of Outstanding Dues
The provincial government’s financial grievances are substantial and multifaceted:
Net Hydel Profit: The largest component of unpaid dues is Rs2,200 billion in net hydel profit, representing electricity revenue that should legally flow to the province. This amount has accumulated over years of non-payment by the federal authorities.
Merged Districts Funding: Following the merger of the former FATA (Federally Administered Tribal Areas) with Khyber Pakhtunkhwa, the federal government committed Rs100 billion annually for development in these regions. However, Rs550 billion remains unpaid. CM Afridi emphasized that while an administrative merger has occurred, financial integration remains incomplete.
NFC Award Controversy
The Chief Minister also raised concerns about the distribution of the National Finance Commission Award. According to his statement, KP’s rightful share should be 19.4 percent, but the province currently receives only 14.6 percent of the divisible pool. This discrepancy adds another dimension to the ongoing financial disputes between the province and the federal government.
War on Terror Contribution
Addressing critics who question KP’s one percent share under the NFC Award for counter-terrorism efforts, CM Afridi reminded that the province made unprecedented sacrifices in the war against terrorism. He argued that other provinces receive additional funds under various categories while KP remains deprived despite its contributions.
Development Initiatives Continue
Despite financial constraints, the provincial government launched an ambitious beautification project for Peshawar aimed at restoring the historic character of the capital. The project includes:
- Road infrastructure rehabilitation
- Installation of modern streetlights
- Measures to reduce traffic congestion
- Placement of cultural sculptures
- Development of green spaces
The initiative will focus on key routes including Peshawar Ring Road, Jamrud Road, and GT Road. A comprehensive master plan for the city is also under development in consultation with public representatives.
Political Implications
CM Afridi’s strong statements reflect growing frustration in the province over what is perceived as unfair financial treatment. His reference to the province being treated “like a stepchild” indicates deteriorating centre-province relations on fiscal matters.
The Chief Minister affirmed his government’s commitment to public welfare, stating that all provincial laws and policies would prioritize citizen interests. He credited public support for the provincial government’s mandate, referencing electoral victories based on specific political leadership.
Looking Forward
As the dispute over financial rights intensifies, the resolution of these outstanding dues remains critical for KP’s development trajectory. With merged districts requiring substantial investment for infrastructure and social services, delayed federal funding could hamper progress in these sensitive regions.
The provincial government has made it clear that it will continue demanding full financial rights, setting the stage for potentially difficult negotiations with federal authorities. How this fiscal standoff resolves will have significant implications for federalism and resource distribution in Pakistan.
