PESHAWAR: KP Chief Minister of Khyber Pakhtunkhwa, Ali Amin Khan Gandapur has said that over last one year, the provincial government has not taken loan of single rupee, instead has repaid Rs.50 billion of existing debt.
Speaking at a press conference on Sunday evening, he said that when he assumed office, the provincial treasury only had enough funds to cover 15 days of salaries. However, through effective financial management, the government has presented a surplus budget of Rs. 169 billion over the past year.
Without imposing any new taxes, provincial revenues have increased by Rs. 55 billion, Rs. 72 billion in outstanding payments have been cleared, and an additional Rs. 30 billion has been allocated for development projects.
He said that the provincial government established a Debt Management Fund with an initial allocation of Rs. 30 billion, which will be increased to Rs. 50 billion by the end of this year.
KP govt establishes debt management fund
He said that the government is focusing on sectors with high potential. He pointed out the vast net hydel power generation capacity within the province, which is now being harnessed. By 2028, the province aims to significantly increase its own electricity production.
A transmission line project worth Rs. 18 billion is under way to supply this electricity at lower rates to local industries, which will foster industrial growth and create job opportunities.
During Ramadan, the provincial government will disburse a package of Rs. 20 billion to support deserving households. Over the past year, all scholarships and stipends have been doubled. The Zakat payment has been raised from Rs. 12,000 to Rs. 25,000, while the financial assistance provided for dowries has been increased from Rs. 25,000 to Rs. 200, 000.
The Chief Minister said that endowment funds have been established to make deficit-running institutions financially independent, including universities and Water and Sanitation Services Companies (WSSCs). He expressed confidence that by the end of the year, these institutions will be standing on their own feet.
He criticised the federal government for comparing KP and Balochistan’s situation with Punjab to score political points, calling it regrettable. “The current security crisis is a direct result of federal negligence,” he said, urging serious action before matters further worsen.
Gandapur revealed that he has consistently advocated for dialogue with Afghanistan to ensure lasting peace in the region. Although the federal government has now agreed to talks, no significant progress has been made, despite KP’s preparation of Terms of Reference (TORs) and the hosting of multiple Jirgas and meetings.
On financial matters with the federal government, Gandapur reminded that despite the merger of the former tribal areas in 2018, KP still has not received its due share in the National Finance Commission (NFC) Award. “If this issue is not addressed, we will be forced to protest, and this will be a united movement involving all political parties, citizens, and government employees”“ he warned.
He further added that the federal government owes KP over Rs. 2 trillion in net hydel profits and billions more under the accelerated development program for the merged districts and security operations. “If we are granted our constitutional rights, we will be able to strengthen our police force and address the grievances of the merged districts,” Gandapur said, warning that public trust is eroding due to these delays, which could hinder the fight against terrorism.
Copyright Business Recorder, 2025
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