‘Islamabad owes KP’s nearly Rs4trn in overdue payments’

ISLAMABAD: Shafi Jan, the special assistant to the chief minister Khyber Pakhtunkhwa on information and public relations on Sunday launched a fierce critique of the federal government, claiming that Islamabad owes the province nearly Rs4 trillion in overdue payments.

Talking to reporters, he revealed that several dues remain unpaid, including hydropower profits that have yet to be fully settled. He also accused the federal government of withholding Khyber Pakhtunkhwa’s rightful share of excise duties on petroleum, gas, and tobacco.

“Despite receiving over Rs8,400 billion over the past 15 years, the federal government continues to neglect its financial responsibilities,” he added.

He pointed out that, even after the merger of Federally Administered Tribal Areas (FATA), the federal government has failed to update the Seventh National Finance Commission (NFC) Award, leaving the merged districts with a mere Rs168 billion – a fraction of what they are owed.

Jan didn’t hold back, also noting that development spending in the merged areas has been slashed by more than Rs50 billion this year alone. Worse still, he added, the federal government has failed to release the promised Rs17 billion for displaced persons.

“This is not just a financial shortfall; it’s a blatant disregard for the province’s needs,” he declared, urging the federal government to immediately settle the dues to allow Khyber Pakhtunkhwa to continue vital development projects and meet the needs of its people.

Copyright Business Recorder, 2025