Khyber-Pakhtunkhwa (K-P) is entitled to a 19.6 percent share in the National Finance Commission (NFC) award based on its existing population following the merger of erstwhile Fata. However, the province is currently receiving only 14.6 percent, according to K-P Caretaker Chief Minister Muhammad Azam Khan.
He emphasized the provincial government’s commitment to strict financial discipline and its efforts to reduce unnecessary expenditures through austerity measures. Notably, the government has managed to avoid taking any overdraft from banks.
The chief minister acknowledged that due to extensive recruitments during previous administrations, the budget allocation for salaries and pensions in provincial departments and government universities has significantly increased. This surge in expenses has led to financial challenges for both the provincial government and higher education institutions, as a substantial portion of the provincial budget is consumed by these payments.
Chief Minister Khan discussed these financial matters with participants of the 25th National Security Workshop of the National Defence University, who met with him.
Among the attendees were Major General Raza Aizad from the National Defense University in Islamabad, Chief Secretary Nadeem Aslam Chaudhary, Additional Chief Secretaries Muhammad Abid Majeed and Syed Imtiaz Hussain Shah, and Secretary of Finance Amir Sultan Tareen. He highlighted the severe impact of the decades-long war on terror on K-P, particularly in the tribal belt. This conflict has led to law and order issues, a struggling economy, and sluggish development. The newly merged tribal districts, in particular, require special attention from the government to address the long-standing deprivations they have endured.
The chief minister expressed concerns that the commitments made by the federal government and the federating units during the merger have not been fulfilled. He pointed out that K-P is not receiving its fair share in various federal transfers, including the NFC, net hydel profit, and oil & gas royalty, which has created a significant financial challenge for the provincial government.
Additionally, measures have been taken to strengthen the Counter-Terrorism Department (CTD) in order to effectively combat issues like extortion and terrorism in the province.
Published in The Express Tribune, October 20th, 2023.
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