KP government’s liabilities to federation detailed in new report

PESHAWAR: Key details regarding the financial liabilities of the Khyber Pakhtunkhwa (KP) government to the federal government have surfaced in an official compilation prepared by the provincial Planning and Development (P&D) Department.

According to the document, the Khyber Pakhtunkhwa government owes the federal government a total of Rs 4,758 billion in the form of various projects and funds.

The report states that the federal government allocated a total of Rs 5,365 billion. However, only Rs 603 billion of this could be released.

According to the document, Khyber Pakhtunkhwa’s share in the NFC award was increased after the merger of FATA in 2019. However, not a single rupee out of the Rs 1,375 billion allocated under NFC was transferred to the province.

Similarly, Rs 700 billion was allocated under the Action Plan Investment Program (AIP). Of which Rs 531 billion is yet to be released. Rs 178 billion was allocated under the Public Sector Development Program (PSDP). Out of which Rs 54 billion is still due.

The document further stated that Rs 79 billion allocated for the ongoing expenses of the merged districts is also due to the federation.

Rs 63 billion was promised for the Water and Power Development Authority (WAPDA). However, Rs 3.5 billion has not been paid yet.

Khyber Pakhtunkhwa owes Rs 2,252 billion to the federation from 2017 to 2025 in terms of net hydel profit. Similarly, the federal government allocated Rs 3.9 billion for the Chashma Right Bank Canal project. However, not a single rupee has been released under this head either.

According to the document, Khyber Pakhtunkhwa owes Rs 197 billion to the federation in terms of federal excise duty. While the provincial government’s Rs130 billion in windfall levy has not yet been paid.

According to provincial officials, the non-payment of federal dues is severely affecting development projects and the province is facing financial pressure.